US Postal Service Suspends Parcel Imports from China Amid Rising Tensions

The US Postal Service (USPS) has halted the acceptance of parcels from mainland China and Hong Kong “until further notice” in response to newly implemented regulations that close a loophole allowing duty-free imports of low-value goods. This move comes amid escalating trade tensions between the United States and China, particularly following the announcement by former President Donald Trump of an additional 10% tariff on all Chinese imports.

Under the previous policy, known as “de minimis,” parcels valued at under $800 (approximately £640) could enter the US without being subject to taxes or duties. Chinese fast-fashion companies like Shein and Temu took advantage of this exemption, shipping inexpensive products to millions of US customers without incurring customs charges. Similar exemptions apply in other regions, including the UK, where the threshold is £135, and the EU, where it stands at €150 (approximately £124).

However, the surge in the volume of parcels, with nearly half originating from China, prompted US authorities to reassess the system. The growing concern over the influx of goods—some of which may be illegal or substandard—has led to increased scrutiny at customs. USPS confirmed that the suspension only affects parcels, with letters remaining unaffected, but did not provide further details on the matter.

This policy change reflects a global trend as other regions tighten their import regulations. The EU has also announced measures to strengthen checks on goods from e-commerce platforms, specifically targeting Shein and Temu, and has launched an investigation into Shein‘s compliance with European consumer protection laws. These measures come amid growing concerns about the safety and regulation of goods sold online.

The US crackdown on duty-free imports is part of a broader escalation in trade tensions between the US and China. In response, China has threatened retaliatory tariffs on certain US brands, including PVH, the parent company of brands like Calvin Klein and Tommy Hilfiger. Meanwhile, China has also advanced its development of AI-driven and autonomous weapons, raising security concerns in the West.

Retailers in the UK and Europe have expressed support for the new US regulations. Nick Stowe, CEO of Monsoon Accessorize, welcomed the changes, arguing that the previous system unfairly benefited online retailers, such as Shein, by allowing them to avoid customs duties while expanding their businesses.

The US-China trade dispute continues to intensify, with little sign of resolution. Discussions between Trump and Chinese President Xi Jinping have stalled, and Trump has stated he is “in no rush” to resume negotiations. As tensions rise, concerns about a wider trade war loom, with potential ramifications extending beyond just fast fashion.