Your packages are about to get slower and more expensive
The United States Postal Service has warned of “disruption to package delivery” from China and Hong Kong, after briefly suspending all inbound package shipments from the two countries. The suspension was announced yesterday but has already been rescinded, and USPS says it is “accepting all” parcels shipped from China again.
The confusion comes after President Trump used an executive order imposing a 10 percent tariff on Chinese goods to also close a loophole called the de minimis exception, which allowed packages valued below $800 to enter the US duty free. It’s how e-commerce outfits including Shein and Temu have been able to offer goods to US buyers at such low prices. It is also widely exploited by the likes of Amazon and by merchants on Etsy and eBay.
While USPS is once again accepting packages, there’s still a risk of delays and disruption. The service says that it is working together with US Customs and Border Protection on a collection mechanism for the tariffs in order to ensure the “least disruption.” Neither UPS nor FedEx has announced restrictions on shipments from China, but they are undoubtedly struggling to cope with the new requirements.
The challenge facing USPS and others is managing the task of inspecting the large volume of shipments from China that are suddenly eligible for duty and import taxes, which is almost certain to create delays and problems for packages from other destinations. Added costs are also likely thanks to the additional burden of inspecting and processing the parcels.
Over 1.3 billion parcels entered the US using the de minimis exemption in 2024 according to Customs and Border Protection, a number that’s grown by more than 600 percent over the past decade. De minimis hasn’t been removed entirely, but shipments from China are no longer eligible for it.
In addition to enabling the likes of Shein and Temu, de minimis shipments have posed safety concerns, making it easier for low quality products to reach US buyers. In the extreme case, some e-bike and battery manufacturers have used de minimis to skirt safety regulations and avoid product inspection, contributing to hundreds of fires caused by faulty e-bike batteries in New York City alone.
China has already launched its own response to Trump’s tariffs, with levies on fuel and large vehicles shipped from the US, along with restrictions on exports of certain rare minerals used in some technology manufacturing. The country has also initiated antitrust proceedings against Google and Nvidia, with probes into Intel and Apple rumored to be in the works as well.
Update, February 5th: Updated story to reflect that USPS has lifted the suspension on packages from China.