05/02/2025
05/02/2025
HONG KONG, Feb 5, (AP): Americans are likely to pay more for products from popular Chinese e-commerce platforms like Shein and Temu as the US Postal Service said it would stop accepting parcels from China and Hong Kong. The move was announced Tuesday, coming after the US imposed an additional 10% tariff on Chinese goods and ended a customs exception that allowed small value parcels to enter the US without paying tax.
Canada and Mexico managed to negotiate a month-long reprieve from 25% tariffs threatened by US President Donald Trump. It will likely impact online shopping destinations like Shein and Temu, popular with younger shoppers in the US for cheap clothing and other products, usually shipped directly from China.
Cheap, direct postal service helps these companies keep costs low, as did the "de minimis” exemption that previously allowed shipments to go tax-free if their value is under $800. The temporary suspension by USPS is likely to delay shipments and could mean higher prices in the long term. The US Postal Service said in a notice that it would temporarily stop accepting inbound parcels from the China and Hong Kong Posts until further notice.
Letters and flats - mail that measures up to 15 inches (38 centimeters) long or 3/4 inches (1.9 centimeters) thick - are not affected. The USPS did not state a reason in a brief announcement, but the suspension came after Trump closed the "de minimis” customs exemption this week that allowed shoppers and importers to avoid duties on packages worth below $800.
The exemption was removed as part of an executive order to levy a 10% tariff on Chinese goods. US Customs and Border Protection previously stated that it processes an average of over four million "de minimis” imports each week. Consumers and companies alike will no longer be able to send parcels to the US from Hong Kong or China. This move is likely to impact Chinese e-commerce firms like Shein and Temu, although Shein is likely to be more affected, according to Jacob Cooke, CEO of e-commerce marketing agency WPIC Marketing + Technologies. Both companies have significant market share in the US.