US Postal Service suspends parcels from China, Hong Kong

Washington: The US Postal Service has stopped accepting parcels from China and Hong Kong until further notice after new tariffs imposed by the US President took effect, but letters have been exempted from this ban.

According to a report by the British Broadcasting Corporation (BBC), the US Postal Service (USPS) has said that it has stopped accepting parcels from China and Hong Kong until further notice. The company refused to give a reason for the decision, saying that the suspension would not affect letters.

The exemption, under which small packages worth $800 or less could be sent to the US without paying taxes or fees, has been eliminated after new tax rules came into effect in the US on Tuesday.

This was one of the measures announced by US President Donald Trump, under which an additional 10 percent tariff was imposed on all goods imported from China to the US.

The so-called ‘de minimis’ tax has come under scrutiny in recent years as Chinese e-commerce companies like Shein and Temu have used it to reach millions of American consumers.

Changes to the tax exemptions granted under President Joe Biden were underway even before Trump took office.

But in his trade announcement over the weekend, Trump increased tariffs on all Chinese goods imported into the United States, including fashion products and toys.

In response, China said it would impose tariffs on some American imports, starting February 10 with a 15 percent levy on coal and liquefied natural gas (LNG), and a 10 percent tariff on crude oil, agricultural machinery, and large-engine cars.

Monsoon & Accessories chief executive Nick Stowe told the BBC he supported changes to the US ‘de minimis’ exemption, claiming it allowed big Chinese retailers to undercut rivals in other markets.

He said ‘British, European and US retailers have long complained that Shein was exploiting this loophole, not paying customs duties and expanding their business to an industrial scale’.

Trump is expected to speak to his Chinese counterpart Xi Jinping in the coming days.

Trade expert Deborah Elmes said ‘Trump’s tariff changes are particularly sharp if the goods were previously shipped directly from China to the US through e-commerce’. According to a 2023 report by the US Congress, almost half of all parcels entering the US under the de minimis exemption were sent from China.

Officials have pointed out that the large flow of parcels entering the country through this exemption has made it difficult to screen them for potential illegal goods.