USPS Reverses China Parcel Ban Amid Trade Confusion

The U.S. Postal Service lifted a brief suspension on parcel deliveries from China and Hong Kong after President Trump cut duty-free exemptions for low-value packages to curb fentanyl imports. The reversal leaves retailers and shippers scrambling to adapt, as new tariffs and procedural uncertainties loom.

The U.S. Postal Service announced on Wednesday that it will resume accepting parcels from China and Hong Kong. This comes after a temporary 12-hour suspension following President Donald Trump's decision to end exemptions allowing duty-free entry for low-value packages. Major retailers like Temu, Shein, and Amazon had utilized this exemption.

The sudden reversal has contributed to widespread confusion among retailers and express shipping companies. These businesses are now grappling with the implications of Trump's new 10% tariff on Chinese imports, as well as the end of the 'de minimis' duty exemption for packages valued under $800. This regulatory change aims to curb the influx of fentanyl and its precursor chemicals into the United States.

International shipping companies, while committed to ensuring deliveries, acknowledge potential disruptions as USPS coordinates with U.S. Customs and Border Protection to manage tariff collections on small packages. The swift enactment of these changes leaves businesses with little time to adjust, raising concerns about operational and financial impacts.

(With inputs from agencies.)