The US Postal Service (USPS) has resumed accepting parcels from mainland China and Hong Kong, reversing a temporary suspension caused by new trade measures introduced by President Donald Trump. This shift comes in the wake of significant changes to America’s import duties, particularly the removal of an exemption that allowed packages worth under $800 (£641) to enter the country without facing taxes.
The White House’s decision to scrap this exemption has disrupted cross-border shipments, but USPS has clarified that it is now “working closely” with US Customs and Border Protection (CBP) to ensure efficient tariff collection and minimize delays. The suspension had only affected parcel deliveries, with letters remaining unaffected by the new rules. However, consumer goods, especially fashion items, are now subject to higher import taxes and increased scrutiny.
Shein and Temu, two online retailers, were among the biggest beneficiaries of the previous duty-free threshold, which allowed them to expand rapidly in markets like the UK and EU. Critics, including Nick Stowe, CEO of Monsoon Accessorize, argue that this exemption created an unfair advantage for large foreign retailers while depriving governments of vital tax revenue. Stowe claimed that Shein had “exploited this loophole” to build a business “at an industrial scale.”
In response to the U.S. move, other countries are introducing similar measures. The European Union (EU) is planning to tighten customs checks on “low-value” shipments, which are currently exempt from duties on items worth less than €150 (£124). The EU has also warned fashion platforms such as Shein and Temu that they will be held liable for unsafe products sold through their websites. In 2023, 4.6 billion low-value items were imported into the EU, with 91% of them originating from China.
In the UK, retailers such as Superdry are calling for similar reforms to address what they consider an unfair gap in import duties. Currently, parcels worth under £135 sent directly to individual shoppers are duty-free, a loophole that allows e-commerce giants to avoid paying tax despite having significant sales in the UK. Julian Dunkerton, Superdry’s boss, emphasized that the current rules were not intended for companies sending individual parcels, especially those with billion-pound turnovers.
Amid these changes, the broader tax overhaul in the U.S. also includes a 10% tariff on all goods imported from China, prompting retaliatory threats from Beijing. As tensions rise, President Trump has stated that he is in “no rush” to engage with Chinese President Xi Jinping, suggesting that further disruptions to global supply chains may be on the horizon.
