US Suspends Incoming Parcels from China, Threatening Shein and Temu's Business Model

By Evans Momodu
2 minutes digest

The US Postal Service (USPS) has temporarily halted the acceptance of international parcels from China and Hong Kong, a move that could significantly impact major e-commerce platforms like Shein and Temu.

While USPS did not provide a specific reason for the suspension, it confirmed that letter mail will continue to be accepted.

This decision follows President Trump’s recent executive order, which eliminated the “de minimis” exemption, a policy that previously allowed packages valued under $800 to enter the US duty-free and without inspections.

The change is expected to disrupt the flow of millions of low-cost shipments from China, a key factor in the success of fast-fashion and budget e-commerce platforms.

Impact on E-Commerce and Logistics

• USPS faces logistical challenges in implementing the new tax rules, with over 4 million de minimis packages arriving daily in 2024.
• Other global shipping companies, DHL, FedEx, and UPS, have yet to comment on whether they will follow suit.
• Chinese exporters will likely face delays and higher costs, making low-cost goods less competitive in the US market.

China's Retaliation

Beijing has responded to Trump’s new 10% tariffs with a series of countermeasures, including:

• A 15% tariff on coal and liquefied natural gas
• 10% tariffs on crude oil, large-displacement cars, and agricultural machinery
• Export controls on over two dozen metal products and related technologies
• Blacklisting two US firms, biotech company Illumina and fashion retailer PVH Group

With these escalating trade tensions, US-China relations are heading into another phase of economic conflict, with e-commerce, energy, and technology sectors caught in the crossfire.
Source: CNN