On February 5, 2025, the U.S. Postal Service (USPS) made a surprising announcement, reversing its decision to suspend all international inbound mail and packages from China and Hong Kong. This decision came just 12 hours after the initial suspension was put in place, which was linked to President Donald Trump's executive order imposing a 10% tariff on all goods from China effective February 4, 2025. The suspension also included the elimination of the 'de minimis' rule, which previously allowed packages valued under $800 to enter the U.S. duty-free [1f9ea3bd].
The USPS stated that it would collaborate with Customs and Border Protection (CBP) to implement an efficient collection mechanism for the new tariffs. In 2023, approximately 30% of small packages entering the U.S. were sent by Chinese e-tailers Shein and Temu, a figure that has likely increased in recent months [1f9ea3bd].
Experts warn that the elimination of the 'de minimis' exemption will disrupt international trade and harm U.S. consumers, leading to increased costs and challenges for Chinese e-commerce platforms like Shein and Temu. The 'de minimis' exemption has surged over 600% in the last decade, indicating its significant role in facilitating cross-border e-commerce [61cba304].
The National Council of Textile Organizations (NCTO) has been advocating for the elimination of the de minimis loophole, arguing that it has harmed the U.S. textile industry, leading to plant closures and job losses. NCTO President Kim Glas welcomed the executive order that initiated this change, emphasizing the need for a comprehensive review of unfair trade practices by China and other nations [78f1b26f].
In response to the U.S. actions, Beijing accused the U.S. of 'politicizing trade' and vowed to protect the rights of Chinese companies. China's retaliatory measures are expected to target approximately $20 billion worth of U.S. goods, while U.S. tariffs affect around $450 billion in Chinese imports [38415df0].
Analysts suggest that Chinese retailers should consider localizing their supply chains and diversifying their markets to mitigate the impact of these tariffs [61cba304]. Furthermore, U.S. Customs and Border Protection (CBP) has intensified enforcement efforts against synthetic drugs, particularly fentanyl, which have increasingly entered the U.S. through low-value shipments. The agency aims to enhance data quality and information sharing to mitigate risks associated with these imports [ff174a12].
As the political landscape evolves, further decisions from the incoming administration regarding these trade policies are anticipated. President Trump indicated a potential meeting with Chinese President Xi Jinping but stated he was 'in no rush' to engage in discussions [38415df0]. The suspension and subsequent reversal of parcel imports from China are part of a broader strategy to enhance economic and national security, but the long-term effects on consumer behavior and market dynamics remain uncertain [28157d17].