United States Postal Service has announced the immediate suspension of international parcel acceptance from China and Hong Kong, a move that is set to have significant repercussions on global trade and e-commerce. The decision, which was made without a clear end date, is expected to cause substantial disruptions for online retail giants such as Shein and Temu, both of which rely heavily on direct shipping from China to American consumers. While the USPS clarified that the suspension applies strictly to parcels and does not affect the delivery of letters, it has not provided a specific reason for the decision, leaving businesses and consumers in uncertainty.
The timing of this suspension is particularly notable as it comes on the heels of an executive order signed by former President Donald Trump, terminating the “de minimis” exemption, a trade policy that allowed packages valued under $800 to enter the United States without duties or inspections. The exemption had been a key advantage for Chinese e-commerce companies, enabling them to ship goods directly to American customers with minimal regulatory hurdles. According to Reuters, nearly half of the parcels entering the US under this exemption originate from China, meaning the suspension could cause massive disruptions to supply chains and billions of dollars in business losses.
The decision to halt parcel shipments follows escalating trade tensions between the US and China. Just days before the announcement, a new 10% tariff on Chinese imports went into effect, further exacerbating trade disputes between the two nations. In response, China has imposed its own tariffs on a range of US goods, including coal, crude oil, and agricultural machinery, with additional penalties targeting American technology firms. These retaliatory measures are set to take effect on February 10, marking another phase in the ongoing economic conflict between the world’s two largest economies.
Although the USPS has not explicitly linked the suspension of parcel services to the executive order, trade experts suggest that the new policy may require heightened scrutiny of incoming packages, leading to potential delays as US Customs and Border Protection (CBP) ramps up inspections. Historically, customs officials have had the authority to inspect international shipments, but the suspension of parcel services could indicate a shift towards stricter enforcement. Businesses reliant on fast and cost-efficient shipping methods may now face longer wait times, higher costs, and logistical bottlenecks.
The disruption is particularly concerning for Chinese e-commerce platforms, which have aggressively expanded their presence in the US market. Shein, a fashion retailer that has become a dominant player in online shopping, and Temu, a discount marketplace operated by PDD Holdings, have both built their business models around low-cost, high-volume shipments made possible by the de minimis exemption. With this advantage now revoked and USPS parcel services halted, these companies will likely be forced to adjust their shipping strategies, potentially turning to alternative couriers or establishing US-based distribution centers to circumvent trade restrictions.
The broader implications of this suspension extend beyond e-commerce. The growing rift between the US and China is also affecting corporate relations, with China recently placing two major American firms—biotech company Illumina and fashion conglomerate PVH Group—on its “unreliable entities list.” This designation further restricts these companies’ ability to operate in China, highlighting the increasing volatility in US-China trade relations.
As businesses and consumers await further clarification, the USPS has not provided a timeline for when parcel services to and from China and Hong Kong might resume. This uncertainty leaves retailers, logistics companies, and customers in a state of limbo, uncertain about the future of international shipping between the two nations.
The suspension serves as yet another reminder of the far-reaching effects of geopolitical tensions on global commerce. With both the US and China implementing restrictive trade policies, the international flow of goods is becoming increasingly constrained, signaling potential long-term shifts in global supply chains. As businesses scramble to adapt, the full impact of these policy changes will become clearer in the coming months.
