📢 Sudden Suspension Shocks Retailers
On Tuesday, USPS announced it would stop handling parcels from China and Hong Kong. The move followed President Trump's new 10% tariffs on Chinese imports. It also coincided with the removal of the de minimis exemption, which previously let sub-$800 packages enter duty-free. This decision immediately threatened Chinese e-commerce giants like Shein and Temu, which rely on low-value shipments to U.S. consumers.
🔄 Rapid Reversal Raises Questions
Just 12 hours later, USPS reversed its decision, confirming it would keep accepting packages. It said it was working with Customs and Border Protection to streamline tariff collection. The quick turnaround suggests pushback from businesses or concerns over supply chain disruption. Temu’s parent company, PDD Holdings, saw its stock dip in premarket trading before rebounding after the reversal.
📊 The De Minimis Loophole Closes
Between 2018 and 2021, China and Hong Kong accounted for 67% of de minimis shipments to the U.S. Temu and Shein were responsible for over 30% of these shipments in 2023. Removing this exemption forces these retailers to adjust strategies. Costs could rise for consumers, and shipping delays may become more common.
🚚 What’s Next for U.S.-China Trade?
As USPS and Customs adjust to new tariffs, e-commerce could face turbulence. Chinese sellers may shift to U.S. warehouses to bypass tariffs. American buyers might see price hikes on budget-friendly online goods. The full impact of these changes will unfold in the coming months.
Will tariffs on Chinese imports change your online shopping habits?
