United States Postal Service Halts Packages from China and Hong Kong After New Tariff Rules
The United States Postal Service has temporarily suspended the acceptance of packages from China and Hong Kong following President Trump's new tariff regulations that require detailed customs information and tariff payments.
The United States Postal Service announced on Tuesday that it had temporarily stopped accepting packages from China and Hong Kong. This decision followed an executive order from President Trump, which took effect hours earlier, ending the duty-free handling of these parcels.
Currently, the United States imports about 3 million parcels a day with minimal customs inspection and no duties collected, primarily from China. An executive order signed by President Trump recently mandates that, effective Tuesday morning, each parcel must provide detailed information on its contents, including the applicable tariff code and payment of any tariffs.
The de minimis rule, which previously allowed low-value parcels to bypass tariffs, is now impacted by this order. Low-value parcels from China that once faced no tariffs will now face a 10 percent tariff, in addition to other complex tariffs on various goods.
Companies such as FedEx and UPS manage a large volume of these parcels, operating frequent cargo flights from China to the United States. However, neither company has yet responded regarding their strategies for the new regulations.
Notable e-commerce firms like Shein and Temu facilitate low-cost shipping from Chinese factories to American consumers. While Shein declined to comment on the new package rules, Temu has not replied to inquiries sent earlier this week.
The growth of e-commerce has presented ongoing challenges for the U.S. Customs and Border Protection agency. Officials began addressing the overwhelming influx of small e-commerce packages in 2016, ultimately persuading Congress and the Obama administration to raise the minimum value for customs inspections from $200 to $800.
This adjustment has allowed millions of American households access to inexpensive goods from China. However, American manufacturers in industries such as textiles and apparel argue that the surge of small parcel imports jeopardizes their businesses.
The number of duty-free parcels has soared 10-fold since 2016, prompting ongoing debates in Congress about potential changes to duty-free parcel regulations. President Trump contends that the influx of low-inspection packages into the U.S. has created a channel for harmful substances like fentanyl to enter the country.
