US Postal Service Stops Parcel from China and Hong Kong

February 5, 2025

USPS Distribution Center In Miami Area Ramps Up Operations For The Holidays

Source: Joe Raedle / Getty

According to CNN, The United States Postal Service (USPS) has announced the suspension of all incoming international package shipments from China and Hong Kong until further notice. While the suspension does not affect the flow of letters, the stop on parcels is already starting to cause issues for the e-commerce market. USPS has not provided an explanation for the change, but the timing coincides with recent changes to U.S. trade policies.

Just days into his presidency, President Donald Trump signed an executive order that terminated the longstanding “de minimis” exemption. This rule allowed goods valued under $800 to be imported without duties or inspections. Additionally, President Trump announced a 10% tarrif on Chineese imports taking affect just a week after he took office.

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The suspension threatens to upend the supply chains of e-commerce powerhouses Shein and Temu, both of whom rely heavily on international shipping from China to fulfill customer orders in the United States. Extended delivery timelines, unforeseen costs, and logistical challenges could lead to significant revenue losses for these companies.

Smaller businesses that depend on importing products from China or Hong Kong are also likely to bear the brunt of this suspension. The sudden halt in shipping may force them to seek alternative, often more expensive, shipping options or reconsider their sourcing strategies altogether.

The immediate effects of this suspension are clear, but the long-term ramifications remain uncertain. Whether it sparks new tensions in U.S. China relations or creates an opportunity for a shift toward more domestic production, both businesses and consumers are bracing for what’s ahead.