A United States Postal Service employee is seen at work in New York City as of December 4, 2023. Brendan McDermid | Reuters reports that the U.S. Postal Service has announced a temporary suspension of all inbound packages from China and Hong Kong Posts. This suspension is effective immediately and will remain in place “until further notice,” according to an alert on the agency’s website. However, letters and large envelopes—known as “flats”—sent from these regions will not be affected.
This announcement follows President Donald Trump’s signing of executive orders on Saturday that impose tariffs on imports from China, Mexico, and Canada. Although Trump agreed to delay the implementation of 25% tariffs on Canada and Mexico for 30 days, the 10% tariff on Chinese goods remains in effect. Notably, the orders eliminate the “de minimis” trade loophole, which previously allowed packages valued under $800 to enter the U.S. without duties.
The de minimis provision has been a vital asset for Chinese e-commerce companies such as Shein and PDD Holdings’ Temu, enabling them to penetrate the U.S. market by offering low-cost products across various categories, including clothing, furniture, electronics, and home decor. In 2024, the U.S. processed over 1.3 billion de minimis shipments, as reported by the U.S. Customs and Border Protection agency. A 2023 report from the U.S. House’s Select Committee on the Chinese Communist Party indicated that Temu and Shein are likely responsible for over 30% of all de minimis packages shipped to the U.S., and nearly half of all such shipments from China.
China Post and Hong Kong Post operate as government postal services, but it remains unclear whether the suspension affects packages sent from these regions via private carriers. A USPS spokesperson directed inquiries to the original announcement for clarification.
According to Chris Pereira, president and CEO of consulting firm iMpact, cross-border e-commerce companies depend on USPS for approximately 31% of their last-mile deliveries. These companies also engage various shipping providers, including DHL, FedEx, and UPS, along with smaller carriers. USPS has historically served as a cost-effective solution, particularly for small Chinese sellers, but this suspension may lead to higher costs for sellers and increased prices for American consumers, Pereira noted.
Lawmakers have expressed concerns that de minimis imports grant Chinese firms an unfair competitive edge by enabling them to avoid tariffs. Trade officials have also highlighted that de minimis packages are subjected to minimal documentation and inspection. Advocacy groups and trade organizations have urged Trump to take action against de minimis shipments, arguing that it has facilitated the entry of illicit drugs, such as fentanyl, into the U.S. via mail.
If subjected to tariffs, it is uncertain whether platforms like Temu and Shein can maintain their rapid growth in the U.S. market. However, both companies have previously stated that their business models do not rely on the de minimis provision. They have also established distribution centers in the U.S., allowing sellers in China to ship goods directly to local warehouses.
The trend of opening U.S. warehouses for domestic distribution surged last year as major e-commerce firms aimed to mitigate the impacts of potential trade restrictions, according to Wen Biao, general manager of Shenzhen-based logistics company Qianhe Technology Logistics. Biao noted that demand for his company’s warehouse in Los Angeles had seen “explosive” growth, as translated from his remark.
