Baku, February 5, AZERTAC

The US Postal Service (USPS) says it has suspended the acceptance of incoming international parcels from China and Hong Kong until further notice, threatening the business models of e-commerce giants Shein and Temu, CNN reported.

It did not provide a reason for the suspension, but said in a statement Tuesday the flow of letters will not be affected. USPS did not provide any additional information on the suspension when contacted by CNN.

The announcement comes just days after US President Donald Trump signed an executive order that terminated the “de minimis” exemption, a long-standing rule that allowed anyone, including exporters, to ship packages worth less than $800 to the United States without duties or needing to undergo inspections.

It also follows the introduction of a broad-based 10% tariff on Chinese imports to the US, which took effect on Tuesday.

CNN has reached out to other international delivery companies FedEx and UPS for comment.

“Considering the suspension of shipments of goods originating from China, we are working with our customers, suppliers, and other stakeholders to navigate these changes, avoid disruptions to supply chains and limit adverse impact on U.S. importers and consumers,” according to a DHL spokesperson. The company is still accepting Chinese shipments to the US, but there might be additional times and fees required.

The new rule is likely to affect e-commerce sites like Shein and Temu, which have built their business models around this exemption. The relaxed restrictions and tax exemptions on cheap products have allowed more than a billion packages to pour into the US at low prices for consumers looking for deals on clothing to household goods. CNN has reached out to Shein and Temu for comment.

Chelsey Tam, a senior equity analyst at Morningstar, wrote in a research note that USPS would need time to figure out how to execute the new taxes before allowing Chinese packages to arrive in the US again.

“This is a significant challenge for them because there were 4 million de minimis packages per day in 2024, and it is difficult to check all the packages — so it will take time,” she said.

The termination of the exemption will hit Chinese shipments the hardest, as nearly half of all packages shipped under the de minimis exemption originated there, Reuters reported, citing a June 2023 report by a US congressional committee on the country.

Beijing has retaliated against the new Trump tariffs with a broad package of economic measures on Tuesday, including a 15% tax on certain types of coal and liquefied natural gas, as well as a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks. The measures will take effect on February 10.

It also imposed new export controls targeting over two dozen metal products and related technologies, and added two American firms, biotech company Illumina and fashion retailer PVH Group, to its unreliable entities list.

During a regular press briefing on Wednesday, China’s Foreign Ministry called on the US to “stop politicizing economic and trade issues.”

Washington must “cease its unreasonable suppression of Chinese companies,” spokesman Lin Jian said when asked about the US postal announcement. “China will continue to take necessary measures to firmly defend the legitimate rights of Chinese companies.”