US Postal Service stops accepting parcels from China, Hong Kong

The US Postal Service (USPS) has announced a suspension of parcel services from mainland China and Hong Kong until further notice, though letters remain unaffected.

This decision was revealed in a statement on the USPS website, but no specific reason was provided.

The move comes in the wake of heightened trade tensions between the US and China. Recently, President Donald Trump imposed an additional 10% tariff on all goods imported from China and eliminated a tax exemption for items valued at $800 (£641) or less, known as the “de minimis tax loophole.”

The loophole had been widely utilized by Chinese e-commerce platforms like Shein and Temu to access the US market.

In retaliation, China announced tariffs on US imports, effective February 10.

These include a 15% levy on coal and liquefied natural gas (LNG) products, and a 10% tariff on crude oil, agricultural machinery, and large-engine vehicles.

President Trump is expected to discuss the escalating trade dispute with Chinese President Xi Jinping in the coming days.

“Trump’s tariff changes are especially sharp if goods were previously shipped via e-commerce directly from China to the US,” said trade expert Deborah Elms.

Close to half of all parcels entering the US under de minimis were sent from China, according to a 2023 report by the US Congressional committee on China.

US officials have pointed out that the large flow of parcels entering the country through this exemption made it increasingly difficult to screen them for possible illegal goods.

The BBC has contacted USPS to request more details about the decision.