The US Postal Service (USPS) has reversed its decision to ban inbound packages from China and Hong Kong, just one day after making the announcement. The change comes as a result of the imposition of additional 10% tariffs on Chinese goods by the US government.
Prior to the suspension, the USPS had stated that it would no longer accept parcels from the two regions in an effort to comply with the new tariff requirements. However, following an outcry from online shopping platforms and businesses reliant on cheap imports from China, the USPS has decided to reverse its stance.
Shein and Temu, popular online retailers of cheap clothing and other products, were among those that stood to lose significantly from the ban. The two companies rely heavily on direct shipping from China, which allowed them to keep costs low due to a “de minimis” exemption that exempted shipments under $800 from tax.
The ban would have likely disrupted shipments and raised prices for these businesses, which rely on rock-bottom pricing to drive huge sales. However, with the USPS reversal, it appears that deliveries will resume as normal.
While the reason for the change remains unclear, analysts say consumers can expect price hikes and potential delays in shipments from companies like Shein and Temu under the new tariffs imposed by Trump. Chinese exports of low-value packages have surged to $66 billion in 2023, with Temu and Shein accounting for around 17% of the US discount market.
Source: https://time.com/7212903/shein-temu-usps-china-hong-kong-tariffs-trump