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US Postal Service suspends inbound parcels from China, Hong Kong

Josh Wingrove and Derek Wallbank, Bloomberg News on

Published in News & Features

WASHINGTON — The U.S. Postal Service is temporarily suspending inbound international packages from China and Hong Kong posts, potentially delaying or blocking shipments from retailers like Shein and PDD Holdings Inc.’s Temu.

USPS said letters and flat mail from China and Hong Kong would not be affected, according to a statement on its website.

While it’s not clear what prompted the move, it comes after President Donald Trump revoked a “de minimis” rule for China, which previously allowed small packages under $800 to enter the US duty-free. This exemption, often used by Chinese-linked e-commerce companies, was removed as part of a new 10% tariff on goods from China and Hong Kong, which took effect just after midnight Tuesday Washington time.

The White House didn’t immediately respond to a request for comment. A USPS spokesperson declined to comment beyond the announcement, including whether it was related to the order.

Washington is cracking down on a loophole that retailers like Temu and Shein have used for years to expand in the U.S., allowing them to ship high volumes of small packages and gain an edge over competitors like Amazon.com Inc. Critics say the flood of parcels from China is difficult to track and may contain illegal or dangerous goods.

The total volume of de minimis shipments into the U.S. hit 1.4 billion packages in fiscal year 2024, according to US Customs and Border Protection, about double the number in 2022. Discount online retailers like Temu and Shein contributed significantly to the spike in volume.

However, disruptions from the move may be more limited now than it would have been in previous years, as other postal operators have taken over the USPS’s role in handling cross-border lightweight e-commerce packages, including those from China, according to a U.S. Office of Inspector General report in May 2023.

Shares of Alibaba Group Holding Ltd. fell more than 2% in Hong Kong, while JD.com Inc. tumbled more than 5%. Both companies, as well as Temu, Shein and Amazon, did not immediately response to requests for comment.

 

U.S. officials have alleged that parcel mail, direct from China and via third-party countries, is a gateway for illicit drugs, including deadly fentanyl.

“What the cartels in China have done is exploit that loophole to smuggle in not just fentanyl but all sorts of drugs,” White House trade adviser Peter Navarro told Politico in an event in Washington Tuesday.

The China tariff order took effect even as two others, for Mexico and Canada, were put on hold. Trump has hinted at a possible call with Chinese leadership this week, though details remain unclear.

The White House has not ruled out a deal to pause the tariffs, which could also impact the Postal Service’s ban, though nothing has been confirmed yet.

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(With assistance from Debby Wu, Danny Lee, Claire Che, Luz Ding, Daniela Wei, James Mayger, Jinshan Hong and Newley Purnell.)

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©2025 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.

 

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