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USPS suspends certain incoming packages from China and Hong Kong


The U.S. Postal Service has announced the temporary suspension of all inbound packages from China and Hong Kong Posts until further notice, effective immediately. This decision comes after President Trump signed executive orders imposing tariffs on several countries, including China. A provision in the orders eliminates the “de minimis” trade loophole, allowing exporters to ship duty-free packages worth less than $800 into the U.S.

Chinese e-commerce firms, such as Shein and Temu, heavily rely on this loophole to offer low prices on products shipped to the U.S. The suspension may lead to increased costs for sellers and higher prices for consumers. The impact on Chinese e-commerce platforms remains uncertain, as they have previously stated their business models do not depend on de minimis.

Lawmakers and trade officials have raised concerns about de minimis imports, arguing that they give Chinese companies an unfair advantage and are subject to minimal documentation and inspection, potentially allowing illicit drugs to enter the U.S. Trade organizations have urged Trump to address these issues.

In response to the suspension, companies like Shein and Temu have established distribution centers in the U.S. to store goods and mitigate the impact of trade restrictions. E-commerce companies have also been opening U.S. warehouses for domestic distribution to offset potential challenges from trade regulations. Overall, the suspension of inbound packages may have far-reaching implications for cross-border e-commerce and trade relationships between the U.S. and China.

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