In a significant escalation of the US-China trade conflict, the US Postal Service has temporarily halted the acceptance of packages from China and Hong Kong. This move comes in the wake of former President Trump's repeal of the de minimis rule, which previously allowed duty-free entry for goods under $800. This suspension particularly impacts online retailers like Temu and Shein, which account for a substantial portion of small package imports into the US.
The policy change has sparked criticism from China, which deems the move as an "unreasonable suppression" of its companies. The Chinese government has responded by imposing counter-tariffs on US fossil fuel imports, further intensifying economic tensions.
Over 30% of daily small package imports to the US originate from Chinese retailers, amounting to approximately four million parcels per day. The suspension is expected to affect consumer purchases from major platforms like Amazon significantly. Meanwhile, the European Union is contemplating a similar approach, proposing a fee on online orders from non-EU countries to manage customs more effectively.
The trade standoff has drawn widespread attention, with China urging the US to engage in dialogue on the basis of mutual respect. The situation highlights the broader geopolitical tensions between Washington and Beijing and the potential impact on global trade. As both sides continue to levy tariffs and restrictions, the future of international commerce remains uncertain, with consumers and businesses on both sides caught in the crossfire.
