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Hong Kong (CNN) — The US Postal Service on Wednesday morning announced it will continue accepting incoming international parcels from China and Hong Kong — after saying late Tuesday night that it would suspend them.
Although no reason was given for the initial suspension of package deliveries from China, the Postal Service suggested Wednesday it was related to broad-based new tariffs imposed Tuesday and elimination of the de minimis exemption.
This exemption had allowed anyone, including exporters, to ship packages worth less than $800 to the United States without duties or needing to undergo inspections. Inspecting incoming parcels to collect the new import taxes could prove extremely difficult.
“The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery,” the Postal Service said in a statement Wednesday.
CNN has reached out to USPS and delivery companies FedEx and UPS for comment. DHL said in a statement that it had been working with customers to navigate the changes.
The initial suspension had threatened the business models of e-commerce giants Shein and Temu, which have built their business models around this exemption.
The relaxed restrictions and tax exemptions on cheap products have allowed more than a billion packages to pour into the US at low prices for consumers looking for deals on anything from clothing to household goods.
CNN has reached out to Shein and Temu for comment.
Chelsey Tam, a senior equity analyst at Morningstar, wrote in a research note that USPS would need time to figure out how to execute the new taxes on Chinese packages.
“This is a significant challenge for them because there were 4 million de minimis packages per day in 2024, and it is difficult to check all the packages — so it will take time,” she said.
The termination of the exemption will hit Chinese shipments the hardest, as nearly half of all packages shipped under the de minimis exemption originated there, Reuters reported, citing a June 2023 report by a US congressional committee on the country.
Beijing has retaliated against the new Trump tariffs with a broad package of economic measures on Tuesday, including a 15% tax on certain types of coal and liquefied natural gas, as well as a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks. The measures will take effect on February 10.
It also imposed new export controls targeting over two dozen metal products and related technologies, and added two American firms, biotech company Illumina and fashion retailer PVH Group, to its unreliable entities list.
‘Unreasonable suppression’
During a regular press briefing on Wednesday, China’s Foreign Ministry called on the US to “stop politicising economic and trade issues.”
Washington must “cease its unreasonable suppression of Chinese companies,” spokesman Lin Jian said when asked about the US postal announcement.
“China will continue to take necessary measures to firmly defend the legitimate rights of Chinese companies.”
Trump indicated on Tuesday he was in “no rush” to speak with Chinese leader Xi Jinping to defuse growing trade tensions, despite saying a day before that the two leaders could speak in the next 24 hours.
While it is unclear whether the de minimis suspension was related to the executive order, experts have told CNN the delivery of international parcels into the US would be “slowed down” if every package must be examined.
Currently, US Customs and Border Protection (CBP) has the authority to open and inspect all international packages, though in practice it doesn’t open every single item. CNN has reached out to CBP for comment.
