The United States Postal Service (USPS) has announced that it will no longer accept parcels from mainland China and Hong Kong until further notice. The company clarified that this suspension does not apply to letters, but it did not provide a specific reason for the decision.
On Tuesday, new regulations took effect, closing a loophole that previously allowed small packages valued at $800 (£641) or less to be shipped to the US without incurring taxes or fees. This change was part of measures introduced by former President Donald Trump, who also imposed an additional 10% tariff on all goods imported from China.
The de minimis tax loophole has come under increased scrutiny in recent years, particularly as Chinese e-commerce companies like Shein and Temu have leveraged it to access millions of customers in the US. Changes to the tax exemption were already underway under President Joe Biden prior to Trump’s administration. However, in a recent trade announcement, Trump expanded tariffs to encompass all goods imported from China, including fashion items and toys. In retaliation, China announced it would impose tariffs on certain US imports, with a 15% levy on coal and liquefied natural gas (LNG) starting February 10, and a 10% tariff on crude oil, agricultural machinery, and large-engine vehicles.
Nick Stowe, the CEO of Monsoon & Accessorize, expressed his support for the recent changes to the de minimis exemption in the US during an interview on the BBC’s Today programme. He argued that this exemption has enabled significant Chinese retailers to “undercut” their competitors in various markets.
Stowe noted, “UK, European, and US retailers have long raised concerns that Shein is taking advantage of this loophole by avoiding customs duties, allowing them to operate on an industrial scale.”
In the coming days, Trump is anticipated to engage in discussions with Chinese President Xi Jinping.
Trade expert Deborah Elms commented, “Trump’s tariff adjustments are particularly impactful for goods that were previously shipped directly from China to the US via e-commerce.”
A 2023 report from the US Congress revealed that nearly half of all parcels entering the US under de minimis exemptions originated from China. Officials have highlighted that the substantial volume of parcels entering the country through this exemption complicates efforts to screen for potentially illegal items.
