US Postal Service halts parcels from China & Hong Kong amid shipping disruptions

The US Postal Service (USPS) has stopped accepting parcels from mainland China and Hong Kong. The suspension is in effect until further notice. However, letters remain unaffected. USPS did not explain the reason for the halt.

The move follows a decision by US President Donald Trump. He imposed an additional 10% tariff on all goods imported from China. Trump’s executive order also removed an exemption for goods valued at $800 (£641) or less. This exemption allowed these goods to enter the US without paying duties or certain taxes. The loophole, known as the de minimis tax loophole, came under scrutiny. Chinese e-commerce giants like Shein and Temu exploited it to sell directly to US customers.

In retaliation, China announced its own tariffs on US imports. Starting 10 February, coal and liquefied natural gas (LNG) will face a 15% levy. Crude oil, agricultural machinery, and large-engine cars will see a 10% tariff. President Trump is expected to discuss the situation with Chinese President Xi Jinping soon.

Experts note that Trump’s tariff changes have a strong impact on e-commerce. Deborah Elms, a trade expert, stated that the new tariffs hit goods that previously shipped directly from China to the US.

According to a 2023 report by the US Congressional Committee on China, nearly half of all parcels entering the US under the de minimis exemption came from China. US officials argue that the large volume of parcels made it harder to screen them for illegal goods.

The BBC has reached out to USPS for further details on the suspension.