Why has the USPS suspended inbound parcels from China?

The US Postal Service has announced that Packages accepted from China and Hong Kong have been temporarily suspended.

The decision came after US President Donald Trump shut a trade loophole this week. Online dollar store Temu, Fast-fashion retailer Shein and other retailers used the trade loophole to ship low-value parcels duty-free to the US.

The Trump administration enforced an extra 10% tariff on Chinese goods and moved to close the “de minimis” loophole. The trade deal allows importers and US shoppers to avoid paying tariffs for packages worth less than $800.

Trump administration’s decision came into effect on Tuesday.

USPS said this suspension excludes letters and flat mail coming from China and Hong Kong.

Shein and Temu have grown rapidly in the US. Both companies sell products ranging from toys to smartphones.

Quoting the June 2023 report, the US congressional committee on China said the two firms together likely accounted for over 30% of all packages shipped to the US each day under the de minimis provision.

The report also said nearly half of all parcels shipped under de minimis come from China.

Shein and Temu did not respond to a request for comment immediately.

Niall van de Wouw, Chief Airfreight Officer at freight platform Xeneta, said E-commerce volumes out of China grew 20-30% in 2024.