The United States Postal Service (USPS) has rescinded its decision to halt inbound packages from China and Hong Kong, a day after the initial announcement of the suspension. The initial decision was a response to the U.S. government’s imposition of a 10% tariff on Chinese goods and the removal of a customs exception that previously allowed small-value packages to enter the U.S. tax-free.
On Wednesday, USPS stated it would continue to accept all international mail and packages from China and Hong Kong. However, the Postal Service did not provide a reason for the sudden reversal of its decision. USPS had previously announced on its website that it had temporarily suspended accepting inbound parcels from China and Hong Kong until further notice.
USPS stated in a brief announcement that it would work with Customs and Border Protection to establish a new system for collecting tariffs on Chinese imports while ensuring the continuation of delivery services. The abrupt policy change could have disrupted online shopping platforms like Shein and Temu, which have gained popularity among American consumers for their affordable clothing and household items shipped directly from China.
These companies depend on affordable international postal services and the now-revoked “de minimis” exemption, which previously allowed packages valued under $800 to bypass customs duties. If the ban had remained in effect, it could have resulted in significant delivery delays and increased costs for companies that rely on low shipping rates to maintain high-volume sales. While the initial suspension did not affect letters and other flat mail, the impact on parcel deliveries could have been extensive.
The removal of the de minimis exemption was part of a broader policy shift under the latest executive order, which also introduced the 10% tariff increase on Chinese imports. U.S. Customs and Border Protection has estimated that over four million packages benefiting from the de minimis rule enter the U.S. each week. By eliminating this exemption, the government aims to tighten control over imports while increasing tax revenue from Chinese shipments.
The policy change is expected to have widespread effects across the retail sector, particularly for companies like Shein and Temu, which together account for about 17% of the discount market for fashion, toys, and household goods in the U.S. A recent Congressional Research Service report noted that Chinese exports of low-value packages to the U.S. increased from $5.3 billion in 2018 to $66 billion in 2023, emphasizing the importance of this trade channel.
Neither Shein nor Temu provided immediate comments on the Postal Service’s policy change. However, Temu has previously stated on its website that it also utilizes private carriers like FedEx and UPS to fulfill orders, while Shein customers commonly rely on USPS and FedEx for returns. The broader economic implications of the new tariffs remain uncertain, but analysts predict rising prices and potential supply chain delays for imported consumer goods. In 2023, the U.S. imported approximately $427 billion worth of goods from China, with consumer electronics being one of the largest categories.
Despite the Postal Service’s reversal, industry experts are closely monitoring how the new trade policies will affect shipping logistics, e-commerce businesses, and American consumers in the months ahead.