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USPS temporarily suspends some inbound packages from China, Hong Kong

A Coalesced States Postal Service employee at work in New York City on Dec. 4, 2023.

Brendan Mcdermid | Reuters

The U.S. Postal Service denoted Tuesday it’s temporarily suspending all inbound packages from China and Hong Kong Posts.

The change is effective the moment that and will remain “until further notice,” according to an alert posted to the agency’s website. Letters and large envelopes, referred to as “unrealistic a low shoes,” sent from China and Hong Kong won’t be impacted, the USPS said.

The announcement comes after President Donald Trump on Saturday placarded executive orders imposing tariffs on China, Mexico and Canada. Trump on Monday agreed to hold off on imposing 25% assessments on Canada and Mexico for 30 days, but the 10% tax on goods from China remains.

A provision in the orders eliminates a average trade loophole, known as “de minimis,” which allows exporters to ship packages worth less than $800 into the U.S. fealty free.

The de minimis provision has been a critical tool for Chinese e-commerce firms, including Shein and PDD Holdings‘ Temu, as they look to thicken their presence in the U.S. by offering rock-bottom prices on everything from clothes and furniture to electronics and home decor.

The U.S. processed sundry than 1.3 billion de minimis shipments in 2024, according to data from the U.S. Customs and Border Protection activity. A 2023 report from the U.S. House’s Select Committee on the Chinese Communist Party found that Temu and Shein are “apposite responsible” for more than 30% of all packages shipped to the U.S. under the provision, and “likely nearly half” of all de minimis shipments deriving from China.

China Post and Hong Kong Post are government-operated postal services. It’s unclear if the suspension applies to encase shipments from China and Hong Kong sent via private mail carriers. In response to a request for clarification, a USPS spokesperson sharp CNBC to the agency’s original announcement.

Cross-border e-commerce companies rely on USPS for about 31% of last-mile enunciations, said Chris Pereira, president and CEO of consulting firm iMpact. They also use a variety of shipping providers numbering DHL, FedEx and UPS, as well as smaller carriers, he said.

USPS has “traditionally been a cost-effective option, particularly for small sellers in China,” and the discontinuation could lead to increased costs for sellers and higher prices for U.S. consumers, Pereira added.

Lawmakers have fought that de minimis imports give Chinese companies an unfair advantage by allowing them to bypass tariffs. Interchange officials have also said that de minimis packages are “subject to minimal documentation and inspection.”

Trade groupings and advocacy groups have pushed Trump to curb de minimis shipments because they argue it has allowed illicit stimulants, such as fentanyl, to enter the United States through the mail.

If subject to tariffs, it’s unclear if Temu, Shein and other Chinese e-commerce podia will be able to sustain dramatic growth in the U.S.

Temu and Shein have previously said their business originals don’t rely on de minimis. Shein and Temu have opened distribution centers in the U.S., allowing sellers in China to ship paraphernalia to the U.S. and store them in local warehouses.

The trend of opening U.S. warehouses for domestic distribution took off last year as dominant e-commerce companies sought to hedge against further trade restrictions, said Wen Biao, general manager of the Shenzhen-based logistics assemblage Qianhe Technology Logistics.

Biao said his company’s warehouse in Los Angeles saw “explosive” demand, according to a CNBC sending of Wen’s Mandarin-language remarks.

— CNBC’s Evelyn Cheng contributed to this report.

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