US Postal Service Reverses China Parcel Suspension, Causing Confusion

The U.S. Postal Service (USPS) announced on Wednesday that it would resume accepting parcels from China and Hong Kong, reversing a brief 12-hour suspension. This decision came after President Donald Trump revoked an exemption that allowed retailers like Amazon, Temu, and Shein to ship low-value packages to the United States without duties.

This sudden reversal has left retailers and shipping companies bewildered about how to navigate Trump's new 10 percent tariff on Chinese imports, which aims to combat the illegal flow of fentanyl and precursor chemicals into the U.S. The changes in tariffs have affected the previously established "de minimis" exemption for packages valued under $800, which has become increasingly significant in recent years.

Many major shipping companies pledged to continue operations, but potential disruptions are expected as USPS and the U.S. Customs and Border Protection (CBP) sort out the collection of tariffs on small packages. For example, FedEx has stopped offering its money-back guarantee on international shipments.

Martin Palmer, co-founder of Hurricane Commerce, a data provider for cross-border e-commerce, expressed the industry's frustration: "We're all running around like headless chickens at this moment in time, trying to second-guess what's going to happen. And in two weeks' time we may be back to normal."

Maureen Cori, co-founder of a New York-based consultancy, noted, "There has really been absolutely zero time for anyone to prepare for this. What we really need is direction from the government on how to handle this situation."

According to data from CBP, approximately 1.36 billion shipments entered the U.S. in 2024 using the de minimis provision, marking a 36 percent increase from 2023. Reports indicate that this exemption has been exploited by drug traffickers to import fentanyl and other dangerous substances without adequate screening.

The USPS has stated that it is collaborating with CBP to facilitate an efficient method of collecting the new tariffs on parcels from China, aiming to minimize any disruptions to package delivery. However, the USPS did not clarify whether the suspension was directly linked to Trump's new directive ending de minimis shipments that was enacted earlier this week.

A postal industry expert explained, "The problem is not with the Postal Service. The issue lies with Customs. They are not prepared for what's happening. The trillion-dollar question is who will collect the duties and who will pay them?"

The quick changes have placed additional pressure on CBP, which is already limited in its resources, to manage the increasing number of small packages entering the country. Kate Muth, executive director of the International Mailers Advisory Group (IMAG), pointed out that a traditional federal rule-making process would have allowed companies to prepare adequately for these changes.

Cori also mentioned that parcels previously classified as de minimis will now require individual customs clearances, which will significantly increase the workload for postal services, customs brokers, and shipping agents. This provision was initially designed to simplify trade processes, but it has grown in significance alongside the rise of online shopping.

Companies like Shein and Temu, which account for over 30 percent of daily packages sent to the U.S. under this exemption, are now in an uncertain position. There has been no response from Shein or Temu regarding these regulatory changes.

Some international couriers, including FedEx and SF Express, indicated that they would still ship packages to the U.S. However, FedEx noted that it had suspended its money-back guarantee for incoming shipments citing regulatory changes. On the other hand, DHL is working to minimize disruptions while UPS is assisting clients in evaluating their logistical needs in response to the new rules.

Logistics provider Easyship has informed clients that sub-$800 shipments to the U.S. are likely to receive increased scrutiny. The firm has recommended that customers consider setting up distribution centers within the country or partnering with local warehouses to ease the shipping process.

YunExpress also issued a notice to customers, explaining that their shipments would now face new tariffs, including a 10 percent duty, alongside existing tariffs on steel and aluminum and Trump's Section 301 tariffs on certain China-made goods.

As of Wednesday afternoon, there were still no discussions planned between Trump and Chinese President Xi Jinping regarding the new tariffs or any potential retaliatory actions from Beijing.

USPS, Parcels, Confusion