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U.S. Postal Service Suspends Delivery of Packages from China, Hong Kong
The U.S. Postal Service (USPS) has suspended all parcel deliveries from China and Hong Kong, citing the end of the de minimis exemption under President Donald Trump’s trade policy overhaul. The abrupt change has left retailers like Temu and Shein scrambling, while American shoppers face uncertainty over incoming orders.
Trump’s move also introduced a 10% tariff on Chinese imports, further disrupting e-commerce shipments that previously bypassed customs duties. The change aims to curb the influx of low-cost Chinese goods, but it has also raised questions about how and when the U.S. Postal Service will resume normal service.
What is the De Minimis Trade Exemption?
The de minimis exemption allows foreign shipments valued under $800 to enter the U.S. without tariffs or detailed customs checks. Retail giants like Temu, Shein, and Amazon Haul have leveraged this rule to flood the U.S. market with low-cost products, often shipping directly from Chinese warehouses.
Before its cancellation, de minimis accounted for nearly 50% of all duty-free packages entering the U.S., with Chinese e-commerce dominating this trade. Trump’s crackdown now closes this loophole, forcing companies to declare and pay duties on all shipments, potentially increasing consumer prices.
Timeline of the U.S. Postal Service Suspension
The U.S. Postal Service suspension of parcels from China and Hong Kong took effect on February 5, 2025, immediately following Trump’s executive order. While USPS has not provided an official timeline for resumption, experts suggest that processing delays and new customs requirements will take weeks, if not months, to resolve.
Chelsey Tam, a senior equity analyst at Morningstar, noted that USPS is struggling to sort through the new customs paperwork, given that the agency previously processed around 4 million de minimis packages per day. Until a system is in place for enforcing the new trade policy, shipments from China remain on hold.
Despite the suspension, letters and “flats” (large envelopes) from China and Hong Kong are still being accepted, allowing limited international mail flow. However, the U.S. Postal Service continues to restrict delivery of packages and parcels until further notice.
Private Carriers Continue Operations
While the U.S. Postal Service has halted parcel deliveries from China, private courier services such as FedEx, UPS, and SF Express continue to process shipments. These companies operate outside the de minimis exemption and already have infrastructure in place to handle customs declarations and tariff payments.
SF Express, China’s largest private delivery service, has reassured customers that it will maintain U.S. shipments despite the new trade rules. Meanwhile, FedEx and UPS are advising retailers to set up U.S.-based fulfillment centers to avoid international shipping disruptions.
Although private carriers offer an alternative, their services come at a higher cost, making it unclear whether e-commerce giants will absorb these expenses or pass them on to consumers.
Conditions for the U.S. Postal Service to Resume Service
For USPS to reinstate parcel deliveries from China and Hong Kong, several key conditions must be met:
- Customs Processing Infrastructure – USPS must implement systems to handle tariff collections and verify package contents, a process that could take months.
- Regulatory Clarity – The government must define how U.S. Customs and Border Protection (CBP) will enforce and monitor de minimis violations.
- Policy Adjustments – If delays and trade bottlenecks continue, the Trump administration may refine its approach, possibly allowing exceptions for certain goods or industries.
Until these steps are completed, USPS parcel shipments from China remain suspended indefinitely.
Do you support additional tariffs on small retail items previously exempted by de minimis? Tell us what you think!
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