In a recent development, the U.S. Postal Service announced a temporary suspension of parcels from China and Hong Kong following President Donald Trump's termination of a trade provision used by retailers like Temu and Shein. This provision allowed duty-free shipment of low-value packages to the U.S.
The Trump administration imposed an additional 10% tariff on Chinese goods effective Tuesday and scrapped the exemption that previously allowed U.S. shoppers to avoid tariffs on shipments under $800. These actions were in response to concerns over the flow of dangerous synthetic opioids like fentanyl from China to the U.S.
Chinese suppliers had exploited the duty-free provision by disguising chemical materials for fentanyl as inexpensive goods, as reported by Reuters.
Ram Ben Tzion, founder of Ultra Information Solution, expressed concerns over the impact on orders from Amazon, Shein, and Temu, noting the uncertainty faced by customers awaiting deliveries.
The U.S. Postal Service clarified that the suspension only affects parcels, not letters or 'flats' from China and Hong Kong. However, the handling of Chinese packages will be subject to new taxes, causing delays in processing, as explained by industry analysts.
Regarding the situation, a businessman in Hong Kong expressed frustration over the uncertainty surrounding his shipment to the U.S., emphasizing the negative effects of the political standoff on local businesses and people.
China's foreign ministry called for dialogue with the U.S. to address drug demand and strengthen law enforcement cooperation as a solution to the fentanyl crisis.
In response to the changes, logistics provider Easyship advised clients on alternative shipping methods to the U.S., warning of increased scrutiny on sub-$800 shipments.
While some international couriers continue to operate as usual, e-commerce giants like Shein and Temu are expected to face challenges due to the new regulations. These companies are exploring various strategies such as diversifying sourcing locations and collaborating with U.S.-based facilities to navigate the evolving trade landscape.