The U.S. Postal Service has announced a temporary suspension of all inbound packages from China and Hong Kong Posts, effective immediately. This decision comes after President Donald Trump signed executive orders imposing tariffs on several countries, including China. The orders also eliminate the de minimis provision, which allowed packages worth less than $800 to enter the U.S. duty-free.
Chinese e-commerce companies like Shein and Temu have relied heavily on the de minimis provision to offer competitive prices in the U.S. market. The suspension of inbound packages could result in higher costs for sellers and consumers. Lawmakers have criticized de minimis imports for giving Chinese companies an unfair advantage and allowing illicit drugs like fentanyl to enter the U.S.
Despite the suspension, companies like Shein and Temu have stated that their business models do not depend on de minimis. They have opened distribution centers in the U.S. to store goods and facilitate domestic shipping. This trend of establishing U.S. warehouses has gained popularity among e-commerce companies seeking to mitigate trade restrictions.
The impact of the suspension on the growth of Chinese e-commerce platforms in the U.S. remains uncertain. It is unclear whether these companies will be able to sustain their growth without the de minimis provision. USPS serving as a cost-effective option for small sellers in China has been relied upon for last-mile deliveries by cross-border e-commerce companies.
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