US Postal Service suspends inbound parcels from China, Hong Kong 

HONG KONG/SEOUL/SHANGHAI — 

The U.S. Postal Service said it would temporarily suspend parcels from China and Hong Kong, aft President Donald Trump ended a commercialized proviso this week utilized by retailers including Temu and Shein to vessel low-value packages duty-free to the U.S.

The Trump medication imposed an further 10% tariff connected Chinese goods that came into effect connected Tuesday and moved to adjacent the "de minimis" exemption that allows U.S. shoppers to debar paying tariffs for shipments beneath $800.

The other tariff and the elimination of de minimis travel repeated warnings by Trump that Beijing was not doing capable to halt the travel of fentanyl, a unsafe synthetic opioid, into the U.S.

Reuters reported antecedently that Chinese suppliers usage the duty-free proviso to export chemic materials for fentanyl by disguising them arsenic gadgets and different low-cost goods.

"This is huge... People waiting for orders from Amazon, Shein and Temu person nary mode of knowing erstwhile they tin person those orders," said Ram Ben Tzion, laminitis of Ultra Information Solution, the steadfast down integer shipment vetting level Publican.

USPS said the alteration volition not interaction the travel of letters and 'flats' — message that tin beryllium up to 15 inches (38 cm) agelong oregon 3/4 inches (1.9 cm) heavy — from China and Hong Kong. It did not instantly remark connected whether this was tied to Trump's alteration to ending de minimis shipments from China and different countries.

"The USPS would necessitate immoderate clip to benignant retired however to execute the caller taxes earlier allowing Chinese packages to get successful the U.S. again," said Chelsey Tam, a elder equity expert astatine Morningstar.

"This is simply a important situation for them due to the fact that determination were 4 cardinal de minimis packages per time successful 2024, and it is hard to cheque each the packages — truthful it volition instrumentality time."

At a Hong Kong station office, a businessman who had travel to cheque the presumption of a bundle helium sent to the U.S. earlier expressed vexation aft a staffer told him it wasn't imaginable to ascertain wherever his transportation mightiness beryllium now.

"This governmental warfare is affecting the section people, not conscionable successful Hong Kong but successful different places too. It's precise disturbing for us," John Khan, who has tally a trading concern for astir 30 years, told Reuters.

China's overseas ministry called connected Wednesday for dialog and consultation betwixt Beijing and Washington, adding that reducing request for drugs astatine location and enhancing instrumentality enforcement practice was the cardinal mode for the U.S. to lick its fentanyl crisis.

Greater scrutiny

Logistics supplier Easyship warned clients who regularly nonstop sub-$800 shipments to the U.S. were apt to look overmuch greater scrutiny and advised them to acceptable up organisation centers wrong the U.S., spouse with a section warehouse oregon U.S. fulfillment center.

Some different planetary couriers including FedEx FDX.N and SF Express, China's largest explicit transportation company, said they proceed to nonstop packages to the U.S.

FedEx, however, added it had suspended its money-back warrant for U.S. inbound shipments effectual Jan. 29, citing caller regulatory changes, according to a announcement connected its website.

Fast-fashion retailer Shein and online dollar-store Temu, some of which merchantability products ranging from toys to smartphones, person grown rapidly successful the U.S. acknowledgment successful portion to the de minimis exemption.

The 2 firms unneurotic apt accounted for much than 30% of each packages shipped to the United States each time nether the de minimis provision, the U.S. legislature committee connected China said successful a June 2023 report.

Nearly fractional of each packages shipped nether de minimis travel from China, according to the report.

Shein and Temu did not instantly reply to a petition for comment.

"Doing the paperwork for customs declarations was not thing these companies had to woody with precise often before," said Basile Ricard, operations manager astatine Ceva Logistics Greater China.

"So this is simply a precise caller process for them. If this remains a mostly manual process it volition beryllium incredibly difficult... It's truly not wide for america astatine this signifier however they are going to negociate that."

Amazon besides has a ample seller basal successful China, with e-commerce consultancy Marketplace Pulse estimating successful February that China-based sellers correspond astir fractional of the apical 10,000 sellers connected Amazon successful the U.S. Amazon did not instantly respond to a petition for comment.

In November, the U.S. institution acceptable up Amazon Haul to let shoppers to acquisition $5 handbags and $10 sweaters from China-based sellers.

Delays successful deliveries

Trump's crackdown connected de minimis would marque the products sold by the likes of Shein and Temu much costly but is improbable to dramatically interaction shipment volumes, experts said.

"E-commerce volumes retired of China grew 20-30% past year, truthful it's going to instrumentality a sledgehammer to ace that level of user request and I'm not definite de minimis unsocial is enough," said Niall van de Wouw, Chief Airfreight Officer astatine freight level Xeneta.

"They volition inactive beryllium cheaper than buying done retailers successful the U.S. Delays successful receiving the goods owed to operational disruptions could person a bigger interaction than price."

Shein has antecedently said it supports betterment of the de minimis provision.

Both Temu, a subsidiary of Chinese e-commerce elephantine PDD Holdings, and Singapore-headquartered Shein, which plans to database successful London this year, person taken measures specified arsenic sourcing much products from extracurricular China, opening U.S. warehouses and bringing much U.S. sellers connected board, to mitigate the impact.

In what would beryllium different stroke to the 2 China-founded e-commerce platforms, the U.S. is discussing whether to adhd Shein and Temu to the Department of Homeland Security's 'forced labor' list, Semafor reported connected Tuesday.