The US Postal Service (USPS) has announced the temporary suspension of parcel acceptance from mainland China and Hong Kong. This move coincides with the enforcement of new regulations on small packages valued at $800 (£641) or less, closing a loophole that previously allowed tax-free shipments to the US.
This loophole, known as the de minimis tax loophole, has attracted attention as Chinese e-commerce giants like Shein and Temu have capitalized on it to reach US consumers. Revision of the tax exemption was underway during President Joe Biden's term even before the administration of former President Trump.
Trump extended tariffs to all Chinese goods entering the US, spanning fashion items and toys, while China responded by imposing tariffs on select US imports. Specific items like coal and LNG will face a 15% duty as of February 10, with crude oil, agricultural machinery, and large-engine cars subject to a 10% tariff.
Nick Stowe, CEO of Monsoon & Accessorize, expressed support for the US changes to the de minimis exemption, highlighting concerns about the unfair advantage granted to Chinese retailers by avoiding customs duties.
Trade expert Deborah Elms remarked, Trump's tariff adjustments will significantly impact direct e-commerce shipments from China to the US. Nearly half of all parcels entering the US under de minimis exemptions originate from China, as noted in a 2023 US Congress report, posing challenges for customs screening due to the high volume.
The BBC reached out to USPS for further information on this development.