USPS Resumes China Parcels: Navigating New Tariff Challenges

The U.S. Postal Service will resume accepting parcels from China and Hong Kong after a hold following President Trump's removal of a trade provision. The de minimis exemption, which allowed duty-free entry for low-value packages, has ended, requiring each package to clear customs individually, imposing greater burdens on postal and logistics services.


Devdiscourse News Desk | Updated: 05-02-2025 19:54 IST | Created: 05-02-2025 19:54 IST
USPS Resumes China Parcels: Navigating New Tariff Challenges

The U.S. Postal Service (USPS) announced on Wednesday that it will once again accept parcels from China and Hong Kong, following a temporary suspension triggered by President Donald Trump's removal of a trade provision. The scrapped "de minimis" exemption had allowed low-value packages from these regions to enter the U.S. duty-free.

The USPS and Customs and Border Protection are coordinating to establish an efficient collection mechanism for the new tariffs on Chinese imports, aiming to minimize disruptions to package delivery services. The Trump administration's additional 10% tariff on Chinese goods now requires individual customs clearance for each package, significantly increasing the workload for postal services and customs agents.

Logistics providers caution that shipments may face more scrutiny, urging strategies like setting up local distribution centers. Companies such as FedEx and SF Express plan to continue cross-border services, but FedEx has temporarily suspended its money-back guarantee for U.S.-bound shipments. The de minimis provision saw significant usage increases, with 1.36 billion shipments in 2024 alone.

(With inputs from agencies.)

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