US Postal Service stops accepting packages from China and Hong Kong after Trump tariffs
The US Postal Service has stopped accepting packages from China and Hong Kong as new tariffs close a loophole that allowed tax-free imports under $800.
The US Postal Service (USPS) said it has stopped accepting packages from mainland China and Hong Kong until further notice. The suspension will not affect letters, the company said, declining to give a reason for the decision, reported by BBC.
However, new rules have come into effect that close a loophole that allowed small packages worth $800 (£641) or less to be sent to the US without paying taxes or duties. It was one of the measures announced by US President Donald Trump, who imposed an additional 10% tariff on all goods imported into the US from China.
Trump’s trade announcement
The so-called de minimis tax loophole has come under increased scrutiny in recent years as Chinese e-commerce giants such as Shein and Temu have exploited it to reach millions of customers in the US. Changes to the tax exemptions under President Joe Biden were already in place before Trump took office.
But in his trade announcement over the weekend, Trump extended tariffs to all Chinese goods imported into the US, including fashion items and toys. In response, China said it would impose tariffs on some US goods. From February 10, coal and liquefied natural gas (LNG) will be subject to a 15% levy. Crude oil, agricultural machinery and cars with large engines will be subject to a 10% tariff.
British retailers complain about Shein
Nick Stowe, chief executive of Monsoon & Accessorize, said he supported the changes in the US, arguing that their absence had allowed big Chinese retailers to “undermine” competitors in other markets. British retailers, European retailers and US retailers have long complained that Shein is exploiting this loophole by avoiding duty, and they have built an industrial-scale business. Trump was expected to speak to his Chinese counterpart Xi Jinping in the coming days, but on Tuesday the US president said he was in no rush to negotiate. According to a 2023 report to the US Congress, about half of all packages imported into the US came from China.
