US Postal Service Halts Incoming Parcels from China & Hong Kong

Hong Kong (CNN)— The US Postal Service (USPS) has halted the receipt of inbound international goods from China and Hong Kong until further notice, jeopardizing the business models of e-commerce behemoths Shein and Temu.

It did not give a reason for the stoppage but said in a statement Tuesday that the flow of letters would be unaffected. When contacted by CNN, USPS provided no additional information on the suspension.

The announcement comes just days after US President Donald Trump issued an executive order terminating the "de minimis" exemption, a long-standing rule that allowed anyone, including exporters, to ship packages worth less than $800 to the United States without paying duties or undergoing inspections.

It also follows the enactment of a broad-based 10% duty on Chinese goods to the United States on Tuesday.

CNN has contacted international delivery companies FedEx and UPS for comment.

"Considering the suspension of shipments of goods originating from China, we are working with our customers, suppliers, and other stakeholders to navigate these changes, avoid disruptions to supply chains and limit adverse impact on U.S. importers and consumers," according to a representative for DHL. The company still accepts Chinese shipments to the United States, although additional times and taxes may apply.

The new law is expected to impact e-commerce companies such as Shein and Temu, which built their business models upon this exemption. The eased limitations and tax exemptions on low-cost products have allowed more than a billion shipments to enter the United States at low rates for consumers looking for bargains on apparel and home items. CNN has contacted Shein and Temu for comment.

Chelsey Tam, a senior stock analyst at Morningstar, stated in a research note that USPS would need time to work out how to implement the higher taxes before permitting Chinese packages to enter the US again.

"This is a significant challenge for them because there were 4 million de minimis packages per day in 2024, and it is difficult to check all the packages — so it will take time," she told reporters.

The elimination of the exemption will have the most significant impact on Chinese shipments, which account for about half of all items shipped under the de minimis exemption, according to Reuters, citing a June 2023 report by a US congressional committee on the country.

On Tuesday, Beijing retaliated against Trump's new tariffs with a comprehensive package of economic measures, including a 15% tax on some types of coal and liquefied natural gas and a 10% duty on crude oil, agricultural gear, large-displacement autos, and pickup trucks. The measures will take effect on February 10.

It also placed additional export limits on more than two dozen metal items and related technology and listed two American companies, biotech giant Illumina and fashion retailer PVH Group, as untrustworthy entities

Unjustified Repression

During a regular press briefing on Wednesday, China's Foreign Ministry urged the United States to "stop politicizing economic and trade issues."

When asked about the US postal announcement, spokeswoman Lin Jian said Washington needed to "stop its unreasonable suppression of Chinese companies." "China will continue to take necessary measures to defend the legitimate rights of Chinese companies firmly."

Trump hinted on Tuesday that he was in "no rush" to meet with Chinese President Xi Jinping to ease rising trade tensions, despite indicating the day before that the two leaders may chat within the next 24 hours.

While it is unclear whether the de minimis ban was related to the executive order, experts told CNN that requiring every box to be scrutinized would "slow down" international postal delivery into the United States.

US Customs and Border Protection (CBP) can open and inspect all international packages. However, they do not open every single one. CNN has contacted the CBP for comment.