U.S. Postal Service Halts China Shipments Amid Trade Changes

The U.S. Postal Service announced a temporary suspension of import parcels from China and Hong Kong following new trade policy changes by President Trump. The closure of the 'de minimis' rule, alongside a new tariff, aims at addressing concerns over China's role in the fentanyl crisis.

The U.S. Postal Service has temporarily halted parcel shipments from China and Hong Kong. This move follows recent trade policy changes imposed by President Donald Trump, targeting Chinese goods with an additional 10% tariff and revoking the 'de minimis' trade provision. Retailers like Temu and Shein, who benefited from duty-free shipping, are notably affected.

The tariff and elimination of the de minimis provision reflect Trump's ongoing contention that China is not sufficiently combating the flow of fentanyl, a potent synthetic opioid, into the United States. Reports suggest that some Chinese exporters have misused this exemption to smuggle chemical precursors for fentanyl disguised as low-cost goods.

The USPS's action will not affect the flow of regular mail from China and Hong Kong. Industry professionals anticipate operational challenges given the high volume of shipments that previously utilized the provision, estimated at 4 million packages daily. Logistic companies and retailers are urged to find alternative solutions, while entities like Shein and Temu adjust their supply chain strategies.

(With inputs from agencies.)