Your packages will be more expensive in the near future
The U.S. Postal Service and China’s response to the Trump administration’s “de minimis” extension of the USPS
Shein uses the USPS for direct- to-consumer shipping from China, and with this channel it would have to rely more on private carriers.
The effort to crack down on the de minimis excemption seems like a much longer-term shift in policy, despite the uncertainty about how long the USPS suspension will last.
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.
HONG KONG — Americans are likely to pay more for products from popular Chinese e-commerce platforms like Shein and Temu as the U.S. Postal Service said it would stop accepting parcels from China and Hong Kong.
The move was announced Tuesday, coming after the U.S. imposed an additional 10% tariff on Chinese goods and ended a customs exception that allowed small value parcels to enter the U.S. without paying tax. Canada and Mexico were granted a monthlong reprieve from the 25% tariffs.
The “de minimis” exemption that previously allowed shipments to be tax-free if they are less than 800 dollars is one of the reasons these companies use cheap, direct postal service.
The USPS did not state a reason in a brief announcement, but the suspension came after Trump closed the “de minimis” customs exemption this week that allowed shoppers and importers to avoid duties on packages worth below $800.
“That will increase logistics costs, which along with the recent scrapping of the de minimis exemption for most products from China, could erode its price advantage.”
The de minimis exception was closed by an executive order imposed by Trump after he used it to impose a 10 percent tariffs on Chinese goods. For example, 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.
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. It’s likely that the added burden of inspecting and processing the parcels has added costs.
Over the past decade, Customs and Border Protection has seen a number of parcels enter the US via the de minimis exemption grow. There are no shipments from China that are still eligible for de minimis.
De minimis shipments pose some safety concerns, and make it easier for low quality products to reach US buyers. Hundreds of fires were caused by faulty e-bike batteries in New York City because some manufacturers used de minimis to skirt safety regulations and avoid product inspection.
