The US Postal Service has halted parcel deliveries from China and Hong Kong, following President Trump’s order to end duty-free handling of smaller shipments worth up to $800 each. The move aims to curb the flow of fentanyl and other synthetic opioids into the country.
As of Tuesday, parcels from these countries face 10% tariffs and more complex customs inspections, unlike before when they were exempt from duties. FedEx and UPS, major carriers that transport packages from China, are also affected by the change in customs rules.
The halt on parcel deliveries is expected to impact e-commerce companies such as Shein and Temu, which rely heavily on this route to bring low-cost goods to US consumers. The US has been importing around three million parcels daily from China with little customs inspection.
Critics argue that allowing these parcels into the country created a conduit for fentanyl and related supplies to enter the US. The Trump administration and some lawmakers have pushed for stricter regulations on imports, particularly those under $800.
The decision to halt parcel deliveries has raised concerns about its impact on supply chains and marketplaces like Amazon. Traditional retailers with physical stores will likely be less affected by the change, as they already comply with labor laws related to Xinjiang’s cotton production.
The US Postal Service initially stopped accepting parcels from China and Hong Kong hours after President Trump’s order took effect, citing a statement released by the agency announcing the suspension. Customs and Border Protection is also adjusting to the new rules, which may cause bottlenecks for shippers in the coming days.
Source: https://www.nytimes.com/2025/02/04/business/china-us-usps-de-minimis.html