The US Postal Service suspends packages from China and attempts to minimize interruption

Following President Donald Trump’s revocation of a trade provision that was utilized by Temu, Shein, and Amazon (AMZN.O) and the opening of a new tab to ship low-value packages duty-free to the United States, the U.S. Postal Service announced on Wednesday that it would once again accept packages from China and Hong Kong after a brief suspension.

“The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery,” it stated in a statement.

The Trump administration eliminated the “de minimis” exception, which permits shipments from China valued under $800 to enter the US duty-free, and levied an extra 10% tax on Chinese products.

Regarding whether the temporary suspension was related to Trump’s order to stop de minimis shipments from China, which was issued on Saturday and went into effect at one minute past midnight on Tuesday, USPS did not immediately respond.

“There has really been absolutely zero time for anyone to prepare for this,” stated Maureen Cori, a co-founder of the consultancy Supply Chain Compliance, located in New York. “What we really need is direction from the government on how to handle this without warning or notice.”

De minimis packages are now combined to allow customs to process hundreds or thousands of shipments at once, but now they will need to be cleared individually, which will put a great deal of strain on postal services, brokers, and customs officers, according to Cori.

The provision’s original purpose was to facilitate trade, and as internet purchasing has grown, so too has its usage.

According to U.S. Customs and Border Protection data, about 1.36 billion goods entered the United States in 2024 using the de minimis rule, a 36% increase over 2023.

Enhanced scrutiny

Easyship, a logistics company, cautioned customers who often ship less than $800 to the US that they will probably be subject to significantly more scrutiny and suggested that they establish distribution hubs domestically or collaborate with a nearby warehouse or fulfillment center in the US.

SF fast, the biggest fast delivery firm in China, and FedEx (FDX.N), among other overseas couriers, announced that they will keep shipping products to the US.

However, FedEx posted a notice on its website stating that, due to recent regulatory changes, it has halted its money-back guarantee for shipments entering the United States as of January 29.

DHL (DHLn.DE), operated by Deutsche Post, opened a new tab and stated that it was trying to prevent supply chain disruptions and minimize adverse effects on consumers.

The de minimis exemption has helped fast-fashion retailer Shein and online dollar shop Temu, which sell everything from toys to iPhones, expand quickly in the US.

In a June 2023 report, the U.S. congressional committee on China determined that about half of all items transported under the de minimis rule originate from China, and that the two companies together probably accounted for more than 30% of all parcels shipped to the United States each day under the de minimis provision.

Requests for comment from Shein and Temu were not immediately answered.