The announcement comes after President Donald Trump on Saturday signed executive orders imposing tariffs on China, Mexico and Canada. Trump on Monday agreed to hold off on imposing 25% tariffs on Canada and Mexico for 30 days, but the additional 10% tax on goods from China remains.
A provision in the orders eliminates a popular trade loophole, known as “de minimis,” which allows exporters to ship packages worth less than $800 into the U.S. duty free.
The de minimis provision has been a critical tool for Chinese e-commerce firms, including Shein and PDD Holdings’ Temu, as they look to grow their presence in the U.S. by offering rock-bottom prices on everything...
The U.S. processed more than 1.3 billion de minimis shipments in 2024...A 2023 report from the U.S. House’s Select Committee on the Chinese Communist Party found that Temu and Shein are “likely responsible” for more than 30% of all packages shipped to the U.S. under the provision, and “likely nearly half” of all de minimis shipments originating from China.
China Post and Hong Kong Post are government-operated postal services. It’s unclear if the suspension applies to package shipments from China and Hong Kong sent via private mail carriers. In response to a request for clarification, a USPS spokesperson pointed CNBC to the agency’s original announcement.