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The US Postal Service has suspended parcels from China and Hong Kong “until further notice” as President Donald Trump closed a loophole that allowed low-value packages to be shipped duty-free from the Far East.
The USPS issued the suspension notice on Tuesday, noting that the acceptance of inbound parcels from mainland China and its special administrative region, effective immediately.
The president also moved to close the “de minimus” provision – colloquially known as the “Shein loophole” – that allowed Chinese-owned e-commerce companies like Shein and Temu to ship packages under $800 into the U.S., duty-free.
The flow of “letters and flats” – which includes large envelopes, newsletters and magazines – will not be impacted, the postal service said.
It came as Trump’s 10 percent tariff on Chinese goods came into effect on Tuesday after the White House threatened to impose levies over the weekend in a so-called attempt to curb the flow of fentanyl coming into the U.S. Twenty-five percent tariffs on neighbors Mexico and Canada were paused for a month in the 11th hour on Monday.
Changes to the tax exemption under the Biden administration were already in progress before Trump took office.
Americans are predicted to see prices of many ultra-cheap goods unless a trade deal is struck between the two superpowers.
Almost half of all de minimis shipments to the U.S. were sent from China, according to a 2023 House Republican report. Shein and Temu likely accounted for more than 30 percent of all packages exploiting the loophole entering the country, the report found.
Officials suggested that the large flow of de minimis parcels made it increasingly difficult to screen them for possible illegal goods.
Responding to the import taxes, China’s foreign ministry announced Tuesday it would impose retaliatory 15 percent tariffs on coal and liquefied natural gas and 10 percent tariffs on oil, agricultural equipment and large-engine cars imported from the U.S. from February 10.
Beijing also said it would investigate U.S. tech giant Google and PVH Corp, the fashion group that owns Tommy Hilfiger and Calvin Klein, as it condemned Trump’s decision as a “serious violation” of the World Trade Organization agreement.
China’s government said the measures were in response to Washington’s “unilateral tariff hike”. It said it would also file a complaint with the World Trade Organization over the “malicious” levies.
Trump maintains that he is in “no rush” to speak with Chinese President Xi Jinping to resolve the new trade war between the world’s two largest economies. The two leaders are, however, expected to speak in the coming days.
The Customs and Border Protection issued guidance for shippers on Monday on navigating the trade restrictions ahead of the tariffs being imposed.
“As we transition to execution of the Executive Order, it is extremely important that the trade maintain awareness of the shipments they are responsible for and are aware of the messaging that they are receiving from CBP,” it said, according to Reuters.
The Independent has contacted USPS the White House and the Chinese embassy in Washington, DC for more information.
