US Halts Parcel Deliveries from China, Dealing Major Setback to Shein and Temu

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Hassan Khan

US Halts Parcel Deliveries from China, Dealing Major Setback to Shein and Temu

The United States Postal Service (USPS) has announced an immediate halt to parcel deliveries from mainland China and Hong Kong, citing unspecified reasons. This move does not affect letter mail but follows a series of trade actions introduced by former U.S. President Donald Trump targeting Chinese imports.

The decision coincides with the U.S. government’s imposition of an additional 10 percent tariff on all Chinese goods. Trump’s executive order also removes the de minimis exemption, which previously allowed goods valued at $800 or less to enter the U.S. without incurring duties. This loophole had enabled Chinese e-commerce platforms like Shein and Temu to gain a foothold in the U.S. market, prompting calls for tighter regulation from U.S. lawmakers.

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A 2023 report by the U.S. Congressional committee on China indicated that nearly 50% of all parcels entering the U.S. under the de minimis rule came from China, raising concerns over the difficulty of screening these large volumes for illicit goods.

In retaliation, China has announced tariffs on select U.S. imports. Starting February 10, China will impose a 15% tariff on coal and liquefied natural gas (LNG) products, as well as a 10% duty on crude oil, agricultural machinery, and large-engine vehicles.

These new trade restrictions are stoking concerns about escalating economic tensions between the two global powers. Experts suggest that the suspension of postal services could disrupt e-commerce supply chains and further complicate U.S.-China trade relations.

“Trump’s tariff changes are particularly impactful for goods that were previously shipped directly from China to the U.S. via e-commerce,” noted Deborah Elms, a trade analyst.

Former President Trump is expected to meet with Chinese President Xi Jinping in the coming days to discuss trade and economic issues, with observers keenly watching for any signs of further deterioration in relations.

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