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The U.S. Postal Service (USPS) has announced a temporary halt on inbound international packages from China and Hong Kong, which could disrupt or delay shipments from popular retailers like Shein and Temu, owned by PDD Holdings Inc.
According to a statement on its website, USPS clarified that letters and flat mail from these regions will not be affected. The move follows President Donald Trump’s decision to revoke the “de minimis” rule for China, which previously allowed small packages valued under $800 to enter the U.S. duty-free.
This exemption, frequently utilized by Chinese e-commerce platforms, was eliminated as part of a new 10% tariff on goods from China and Hong Kong, effective early Tuesday Washington time.
The White House has not yet commented on the decision, and a USPS spokesperson declined to provide further details, including whether the suspension is linked to the tariff order.
The change targets a long-standing loophole that retailers like Temu and Shein have exploited to grow their presence in the U.S., enabling them to ship large volumes of small packages and compete with giants like Amazon.com Inc.
Critics argue that the influx of parcels from China is challenging to monitor and may include illegal or hazardous items.
U.S. Customs and Border Protection reported that de minimis shipments into the U.S. reached 1.4 billion packages in fiscal year 2024, nearly double the 2022 figure. Discount online retailers such as Temu and Shein have been major contributors to this surge.
However, the impact of the suspension may be less severe than in previous years, as other postal operators have increasingly handled cross-border lightweight e-commerce packages, including those from China, according to a May 2023 report by the U.S. Office of the Inspector General.
The announcement sent shockwaves through the market, with Alibaba Group Holding Ltd. shares dropping over 2% and JD.com Inc. falling more than 5% in Hong Kong. Temu, Shein, Amazon, Alibaba, and JD.com did not immediately respond to requests for comment.
U.S. officials have raised concerns that parcel mail from China, both direct and via third-party countries, serves as a conduit for illicit drugs, including fentanyl. White House trade adviser Peter Navarro highlighted this issue at a Washington event, stating, “What the cartels in China have done is exploit that loophole to smuggle in not just fentanyl but all sorts of drugs.”
The new tariffs on China took effect as similar measures for Mexico and Canada were postponed. President Trump has hinted at a potential call with Chinese leaders this week, though details remain unclear.
The White House has not ruled out a possible agreement to pause the tariffs, which could also influence the USPS suspension, but no official decisions have been made.