This is unprecedented in the world of market system: “The United States Postal Service (USPS) has temporarily suspended the acceptance of all incoming international parcels from China and Hong Kong, marking a new flashpoint in the intensifying trade tensions between the U.S. and China.”
Just days ago, President Donald Trump signed an executive order terminating the longstanding “de minimis” exemption, which had previously allowed low-value packages (under $800) to enter the U.S. duty-free and without inspections. This exemption, widely used by Chinese e-commerce giants such as Shein and Temu, has fueled a surge in small-package shipments directly to American consumers.
With this exemption revoked, all imports from China—regardless of value—are now subject to the U.S.’s latest 10% tariff. In retaliation, Beijing has imposed its own set of tariffs, with 10% and 15% duties on select U.S. goods, further escalating economic hostilities between the two countries.
With this, China Plc will have severe challenges in the United States as the supply chain has been distorted since without the United States post office, companies like Temu, Shein and others cannot operate efficiently. If this suspension is not lifted, you could expect recession in the manufacturing regions in China as most produce there primarily for the United States.
The USPS has not recorded a single profit in more than two decades because it wants trade to keep flowing across America and beyond. While private companies like UPS and DHL will take some businesses, do not expect those 90 cent iPhone covers from China to New York to continue to flow.
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Good People, this has entered an injury time as they say in football, and the consequences are elevated for China. Of course America will not go unaffected but China has a lot to lose since it has not fully developed its internal consumption to support its GDP and broad economic output.
Comment on Feed
Comment: Ndubuisi Ekekwe, this situation feels like a wildfire; it’s spreading fast and burning bridges everywhere! what will be the future impact on small businesses?
My Response: ” this situation feels like a wildfire; it’s spreading fast and burning bridges everywhere!” – perfect explanation. It can consume economic progress for everyone
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