The US Postal Service made a surprising decision to resume accepting packages from China and Hong Kong, just hours after temporarily halting services from these countries. This abrupt reversal followed a late Tuesday announcement to suspend shipping services.
In a statement, the Postal Service mentioned collaborating with Customs and Border Protection to establish an efficient collection process for the new China tariffs, aiming to minimize disruptions in package delivery.
Trade War Escalation
The sudden suspension on Tuesday night and the subsequent service renewal on Wednesday occurred in the midst of escalating trade tensions. President Donald Trump imposed a 10 percent tariff on Chinese imports, effective Tuesday.
In response, China, a key trading partner of the US, retaliated by announcing tariffs on various US products, including liquefied natural gas, coal, agricultural equipment, crude oil, and cars. Additionally, investigations were launched against several US companies, such as Google. These measures are set to take effect on Feb. 10, allowing room for negotiation between the two nations.
Impact on Other Countries
Similar tariffs were anticipated for Canada and Mexico; however, through discussions with their leaders, these countries managed to delay the tariffs for a month.
The initial suspension by the Postal Service raised concerns about potential disruptions in e-commerce and global supply chains. Trump's tariff directive also eliminated the de minimis exemption, affecting companies that previously avoided tariffs by shipping packages valued at $800 or less directly to US consumers.
Popular Chinese retailers like Shein and Temu capitalized on the de minimis provision to flood the US market with discounted clothing and household products. According to a 2023 House report, these retailers accounted for over 30 percent of daily packages shipped to the US under this exemption.
The temporary Postal Service suspension could have led to increased shipping costs for US companies like Amazon, which rely on Chinese suppliers for certain products.