Suspension Enforces New Tariffs and Raises Concerns Over Global Retail Impact
The United States Postal Service (USPS) announced a temporary halt on receiving parcels from China and Hong Kong on February 4, following the imposition of a 10% tariff by US President Donald Trump on Chinese imports. This move came as China retaliated with its own tariffs on a wide range of US products, escalating tensions between the two leading global economies.
The suspension, which was first disclosed over the weekend, is set to remain in place “until further notice.” It also involves removing the duty-free exemption for parcels valued below US$800, a policy that previously allowed goods within this range to enter the US without being subject to taxes or duties. This exemption had faced growing scrutiny due to a significant rise in such shipments in recent years.
The surge in parcel volumes is largely attributed to the rapid expansion of Chinese-founded e-commerce platforms like Shein and Temu, which have contributed to a notable increase in low-cost shipments taking advantage of the “de minimis” rule. The recent suspension is expected to cause delays for parcels from these and similar retailers, as the US seeks to tighten controls over incoming shipments, citing security concerns.
On February 5, China’s Foreign Ministry expressed strong opposition to the suspension, accusing the US of “unreasonable suppression” of Chinese companies. Ministry spokesman Lin Jian called on the US to “cease politicising trade and economic matters” and assured that China would take necessary actions to safeguard the rights of Chinese businesses.
Despite the halt, postal services in Macau are not impacted, as the suspension applies solely to parcels originating from mainland China and Hong Kong. Postal workers in Macau confirmed that shipments from the region will still be able to reach the US.
This suspension has raised concerns about the effect it could have on global retailers, including Amazon, as well as online retailers Shein and Temu. AFP has reached out to these companies for further comment on the ongoing situation.
