The US is halting packages from China and Hong Kong – Shein, AliExpress (Alibaba) and Temu are affected – Image: Xpert.Digital
Sudden stop – trade policy escalates: USPS suspends package acceptance from China
USPS suspends package acceptance from China and Hong Kong
On February 4, 2025, the US Postal Service (USPS) made a far-reaching decision: Accepting packages from China and Hong Kong will be suspended until further notice. This measure, which affects only parcel shipments while letters and large letters continue to reach their recipients, is a direct consequence of the intensified trade policies that were revived under the Trump administration.
Background to the decision
The reasons behind this momentous decision are complex and multifaceted. At its core lies the escalating trade dispute between the US and China, which has reached a new dimension with the reintroduction and tightening of tariffs.
A key point is the introduction of 10 percent tariffs on all Chinese imports from the specified date. This measure alone would have had a noticeable impact, but its true explosive potential unfolds in conjunction with the de facto abolition of the so-called "de minimis" rule. This rule previously allowed packages with a value of less than $800 to be imported into the US duty-free. This generous threshold had become a loophole, which was exploited extensively, particularly by e-commerce platforms like Shein and Temu, to ship goods to the US cheaply and without incurring additional charges.
Operational challenges for the USPS
The combination of new tariffs and the elimination of the de minimis rule has presented the USPS with massive operational challenges. The sudden surge in customs clearance now required for every single package far exceeds the USPS's capacity. Each package must be inspected in detail for its contents, assessed, and subjected to the appropriate customs duties. This process is time-consuming, labor-intensive, and requires sophisticated logistics that the USPS cannot provide in such a short timeframe.
Impact on businesses and consumers
The direct impact of these trade measures is multifaceted and affects both businesses and consumers. E-commerce giants like Shein, Temu, AliExpress, and countless other Chinese retailers are facing significant problems. Their shipments are either blocked, massively delayed, or, in the worst-case scenario, even returned to the sender. This leads to customer frustration, lost revenue for retailers, and a general sense of uncertainty in online commerce. Packages already in transit are in a state of uncertainty and could also be affected by the new regulations.
Reactions in the financial markets
The stock markets reacted strongly immediately after the measure was announced. Chinese tech stocks, especially Alibaba and JD.com, experienced significant price declines. Investors reacted nervously to the looming revenue losses and the increasing uncertainty in the trading environment. Share prices fell by 2 and 5 percent respectively, reflecting concerns about a slowdown in the Chinese economy.
China's retaliatory measures
The Chinese government responded promptly to the US measures and announced its own tariffs on US goods. These include coal, liquefied natural gas, and crude oil, which will now be subject to tariffs of 15 and 10 percent, respectively. This move demonstrates that China is not willing to accept US trade policy without a fight and is prepared to take retaliatory measures.
The USPS decision is in effect indefinitely. No specific end date has been given, further increasing uncertainty. The measure applies exclusively to packages, while letters, magazines, and large mail will continue to be delivered without restrictions.
The USPS's decision and the underlying trade policy are highly controversial and polarizing. Supporters argue that the measures are necessary to protect US industries, counter China's unfair trade practices, and curb the smuggling of dangerous substances like fentanyl. Critics, however, warn of serious negative impacts on global supply chains, rising consumer prices, and an escalation of the trade conflict that would ultimately harm all parties involved. They point out that the new tariffs and trade restrictions directly burden US consumers, as imported goods become more expensive. Furthermore, they fear that the measure could further strain economic relations between the US and China and lead to a lasting estrangement.
Another aspect that repeatedly comes up in the public debate is the issue of fair competition. The "de minimis" rule was perceived by many as unfair, as it gave foreign traders an unfair advantage over US companies, which were more heavily impacted by customs regulations. The abolition of this rule is therefore intended to contribute to fairer competition and help US companies to better position themselves in the market.
The effects of this decision will become apparent in the coming weeks and months. It remains to be seen whether the USPS will be able to increase its capacity and make customs clearance more efficient. Equally uncertain is how the Chinese government will react to the US measures and whether further retaliatory measures are to be expected. One thing, however, is certain: the trade conflict between the US and China has reached a new level of escalation that will have far-reaching consequences for the global economy.
In short
The US Postal Service's package halt affects not only Temu and Alibaba (or its subsidiary AliExpress) but also all Chinese e-commerce platforms and retailers that ship goods from China to the US. Specifically, the following players are affected:
Companies directly affected
- Shein: The fashion retailer made extensive use of the “de minimis” regulation for duty-free deliveries.
- AliExpress (part of the Alibaba Group): Shipments are also being blocked.
- Other Chinese retailers: Independent sellers on Amazon, eBay and other platforms who ship goods directly from China.
Indirect effects
– US platforms: Amazon and eBay are experiencing supply gaps because many of their third-party sellers are now delivering Chinese goods.
– Logistics companies: The USPS is unable to handle customs clearance for millions of suddenly dutiable packages.
background
The measure particularly affects companies that previously exploited the "de minimis" loophole (duty-free imports under USD 800). Almost half of all such shipments originated in China. The halt applies to all parcel shipments, regardless of the value of the goods, while letters will continue to be processed.
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