U.S. Postal Service Halts Package Deliveries from China, Impacting E-commerce

The United States Postal Service (USPS) has announced a temporary halt in accepting packages from China and Hong Kong, effective "until further notice." This decision may lead to increased prices for popular products on Chinese platforms and delays in order deliveries for American consumers. The suspension occurs amid escalating trade tensions between Washington and Beijing, as well as the termination of the "de minimis" customs exemption, which previously allowed packages valued under $800 to enter the U.S. without tariffs.

Beginning on February 4th, the USPS will cease accepting international packages from China and Hong Kong indefinitely, while the flow of letters and envelopes will remain unaffected, according to a brief statement on the USPS website.

This move closely follows President Donald Trump's executive order ending the nearly century-old "de minimis" exemption, meaning low-cost shipments from China and Hong Kong are now subject to tariffs and customs inspections. It's part of Washington's broader trade pressure strategy on Beijing, which includes a new 10% tariff on Chinese goods.

Challenges for Chinese E-commerce Giants

The abolition of the customs exemption significantly impacts Chinese e-commerce giants like Shein, Temu, and AliExpress, which have built their business models on selling low-cost goods without tax obligations. According to economic portal Yicai, cited by Europa Press, the volume of shipments from China to the U.S. under the "de minimis" regime increased tenfold from 2015 to 2024, growing from 139 million to 1.36 billion packages.

These platforms have posed a challenge to U.S. retailers like Amazon, eBay, and Etsy, leveraging low production costs and duty-free entry to offer affordable clothing, home goods, and electronics. However, with the removal of "de minimis" and the USPS service suspension, these companies might need to raise prices or adjust their logistics strategies.

Jacob Cooke, CEO of WPIC Marketing + Technologies, noted in statements to the AP that "unlike Temu, Shein relies more heavily on USPS for direct-to-consumer shipping from China. Without this channel, Shein will have to turn to private carriers, which will increase logistics costs." Although Temu will also be affected, the platform has already adopted a strategy of bulk shipping to U.S. warehouses to cut expenses.

Corporate Responses and Logistics Alternatives

To mitigate the impact, Temu has started opening warehouses in the United States, allowing it to ship products domestically and avoid new tariffs. Shein, meanwhile, has accelerated its expansion with local distribution centers, although its business model, which depends on rapid shipping, may be significantly affected.

The Chinese government has responded firmly to the U.S. measure. Lin Jian, spokesperson for China's Ministry of Foreign Affairs, stated that Beijing will take "necessary measures" to protect its businesses and urged Washington to "stop politicizing economic and trade matters and using them as tools to unreasonably suppress Chinese companies."

It's uncertain how long the USPS suspension will last, but the end of the "de minimis" exemption indicates a long-term policy shift. The U.S. Customs and Border Protection (CBP) processes over four million imports under this mechanism weekly, suggesting the new regulation could have a profound impact on cross-border trade.

Cooke believes that Shein and Temu will need to rely more on private carriers as a solution to the USPS suspension. In the long run, Shein may have to consolidate its operations in the U.S., while Temu might reinforce its bulk shipping model.