The U.S. Postal Service has announced a temporary suspension of all inbound packages from China and Hong Kong Posts, effective immediately. This decision comes after President Trump signed executive orders imposing tariffs on various countries, including China. The orders eliminate the de minimis provision, allowing exporters to ship packages worth less than $800 into the U.S. duty-free. Chinese e-commerce firms, such as Shein and Temu, heavily rely on this provision to offer low prices on goods shipped to the U.S.
China Post and Hong Kong Post are government-operated services, and it is unclear if the suspension applies to package shipments from these countries sent via private carriers. The suspension could lead to increased costs for sellers and higher prices for U.S. consumers, as cross-border e-commerce companies heavily depend on USPS for last-mile deliveries. Lawmakers and trade officials have argued that de minimis imports give Chinese companies an unfair advantage and have pushed for restrictions.
Despite the suspension, Chinese e-commerce platforms like Temu and Shein have previously stated that their business models do not rely on de minimis. They have opened distribution centers in the U.S. to store goods locally and mitigate potential trade restrictions. This strategy of opening U.S. warehouses for domestic distribution has seen significant growth, as companies seek to adapt to changing trade policies. The impact of the suspension on the growth and sustainability of Chinese e-commerce platforms in the U.S. remains uncertain.
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