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.

The agency, however, clarified that letters and flat mail would not be affected.

Though USPS did not provide an official reason for the suspension, analysts link the decision to the latest round of tariff and counter-tariff measures exchanged between Washington and Beijing.

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.

The now-terminated de minimis exemption was a crucial component of China’s e-commerce dominance in the U.S. The exemption originally aimed to ease customs burdens by allowing low-value shipments to bypass duties and formal inspections. However, the system became a major advantage for Chinese retailers, allowing them to flood the American market with cheap goods without the same tax obligations faced by U.S. businesses.

According to data from U.S. Customs and Border Protection (CBP), over 1.36 billion shipments entered the country under this exemption in the fiscal year 2024—more than double the 637 million recorded in 2020. The volume of these shipments has been a growing source of concern among U.S. lawmakers and domestic manufacturers, who argue that it gives Chinese firms an unfair advantage while hurting local industries.

By abruptly ending this exemption, the Trump administration has forced Chinese sellers to either absorb new tariff costs or pass them on to consumers, likely making products from Shein, Temu, and other Chinese online platforms more expensive in the U.S.

While the USPS has not explicitly linked its suspension of Chinese parcel shipments to the new tariffs, trade experts suggest the move is an extension of the broader U.S. effort to counter China’s economic leverage. If all packages from China must now be subjected to inspections and customs duties, the volume of shipments requiring processing could overwhelm U.S. customs infrastructure, leading to logistical bottlenecks.

The decision also follows broader tensions between Washington and Beijing over trade policies, intellectual property rights, and national security concerns. The move comes at a time when the Trump administration has made it clear that China’s access to the U.S. consumer market will be curtailed unless Beijing meets Washington’s trade demands.

Consequences for Global Trade and E-Commerce

The suspension of parcel deliveries could significantly disrupt the operations of major Chinese e-commerce firms, which have relied heavily on direct-to-consumer shipping models. Retailers like Shein and Temu have built their businesses around exploiting the de minimis rule, offering ultra-low-cost products with fast international shipping. The USPS suspension and new tariff impositions threaten to upend this model, potentially forcing these companies to shift to costlier logistics solutions or even reconsider their U.S. market strategies.

Moreover, the latest round of trade restrictions is likely to have broader implications for supply chains and global commerce. American consumers, who have benefited from inexpensive Chinese imports, may face price hikes and longer shipping times. U.S. retailers could also see increased costs, particularly those who source inventory from Chinese suppliers.

For now, the USPS has not provided any details on when it might lift the suspension, leaving both businesses and consumers in uncertainty. Some industry experts believe the measure is temporary, while others warn that it could become a long-term policy shift as the US government continues to tighten trade restrictions on China.