US Postal Service suspends incoming packages from China, Hong Kong

The US Postal Service said it would temporarily suspend international parcels from China and Hong Kong, after President Donald Trump shut a trade loophole this week that has been used to ship low-value packages duty-free from China.

The Trump administration imposed an additional 10 per cent tariff on Chinese goods that came into effect on Tuesday and moved to close the "de minimis" loophole that allows importers and US shoppers to avoid paying tariffs for packages worth less than $800.

USPS said the change will not impact the flow of letters and 'flats' from China and Hong Kong. It did not immediately comment on whether this was tied to Trump's change to ending de minimis shipments from China and other countries.

Fast-fashion retailer Shein and online dollar-store Temu, both of which sell products ranging from toys to smartphones, have grown rapidly in the US thanks in part to the de minimis exemption.

The two firms together likely accounted for more than 30% of all packages shipped to the United States each day under the de minimis provision, the US congressional committee on China said in a June 2023 report.

Nearly half of all packages shipped under de minimis come from China, according to the report.

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

Trump imposed the extra tariff on Chinese goods after repeatedly warning Beijing it was not doing enough to halt the flow of illicit drugs into the United States, particularly fentanyl.