Hong Kong
CNN
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The US Postal Service says it has suspended the acceptance of incoming international parcels from China and Hong Kong until further notice, threatening the business models of e-commerce giants Shein and Temu.
It did not provide a reason for the suspension, but said in a statement Tuesday the flow of letters will not be affected. The Postal Service did not provide any additional information on the suspension when contacted by CNN.
The announcement comes just days after US President Donald Trump signed an executive order that terminated 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 duties or needing to undergo inspections.
It also follows the introduction of a broad-based 10% tariff on Chinese imports to the US, which took effect on Tuesday.
CNN has reached out to other international delivery companies DHL and FedEx for comment.
The new rule is likely to affect e-commerce sites like Shein and Temu, which have built their gargantuan business models around this exemption. The relaxed restrictions and tax exemptions on cheap products have allowed more than a billion packages to pour into the US at low prices for consumers looking for deals on clothing to household goods.
CNN has also reached out to Shein and Temu for comment.
The termination will hit Chinese shipments the hardest, as nearly half of all packages shipped under the de minimis exemption originated there, Reuters reported, citing a June 2023 report by a US congressional committee on the country.
Beijing has retaliated against the new Trump tariffs with a broad package of economic measures on Tuesday, including a 15% tax on certain types of coal and liquefied natural gas, as well as a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks. The measures will take effect on February 10.
It also imposed new export controls targeting over two dozen metal products and related technologies, and added two American firms, biotech company Illumina and fashion retailer PVH Group, to its unreliable entities list.
On Tuesday, Trump indicated he was in “no rush” to speak with Chinese leader Xi Jinping to defuse growing trade tensions, despite saying a day before that the two leaders could speak in the next 24 hours.
While it is unclear whether the de minimis suspension was related to the executive order, experts have told CNN the delivery of international parcels into the US would be “slowed down” if every package must be examined.
Currently, US Customs and Border Protection has the authority to open and inspect all international packages, though in practice it doesn’t open every single item.
This story has been updated with additional information and context.
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