Unclear Suspension, Possible Tariff-Related Issues

While the USPS did not initially provide a reason for the temporary suspension, its Wednesday statement suggested the decision was linked to the new US tariffs imposed on Chinese imports and the elimination of the de minimis exemption.

Previously, this exemption allowed packages valued at less than $800 to enter the US without duties or inspections. With its removal, customs officials now face the massive challenge of inspecting incoming parcels to collect new import taxes.

“The USPS and Customs and Border Protection (CBP) are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery,” the USPS said in its statement.

Impact on E-Commerce Giants

The brief suspension threatened major e-commerce companies like Shein and Temu, whose business models depend on the de minimis exemption to ship low-cost goods directly to US consumers. The relaxed regulations had previously allowed over a billion packages to flood the US annually, offering budget-conscious shoppers affordable clothing, electronics, and household items.

Chelsey Tam, a senior equity analyst at Morningstar, highlighted the logistical challenges USPS now faces:

“There were 4 million de minimis packages per day in 2024. Checking all those packages for taxes will take time.”

China Retaliates with Economic Measures

China responded swiftly to the new US tariffs with a set of countermeasures announced Tuesday, including:

• 15% tax on certain types of coal and liquefied natural gas
• 10% tariff on crude oil, agricultural machinery, large cars, and pickup trucks
• New export controls on more than two dozen metal products and related technologies
• Blacklisting of US firms like biotech company Illumina and fashion retailer PVH Group

These measures will take effect on February 10.

China Calls US Actions ‘Unreasonable Suppression’

During a Wednesday press briefing, China’s Foreign Ministry urged the US to stop politicizing trade issues.

“Washington must cease its unreasonable suppression of Chinese companies,” said spokesman Lin Jian, adding that China will take necessary steps to defend its businesses.

Trade Tensions Escalate

As trade tensions rise, former President Donald Trump—who initiated these tariffs—stated on Tuesday that he was in “no rush” to speak with Chinese President Xi Jinping, despite previously suggesting a conversation might happen within 24 hours.

Experts warn that requiring inspections for every package could significantly slow down international deliveries. While CBP has the authority to inspect all international parcels, in practice, not every item is opened. CNN has reached out to CBP for further comment.

This story has been updated with additional information and context.

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