President Donald Trump announced a temporary halt to the imposition of 25% tariffs on imports from Canada and Mexico for 30 days. This decision follows the recent imposition of an additional 10% tax on Chinese goods, which are among the top trading partners of the United States. The move is part of a broader strategy that includes closing the "de minimis" loophole, a nearly century-old provision that allowed exporters to send parcels valued under $800 to the U.S. duty-free.
The closure of the "de minimis" loophole is anticipated to significantly impact Chinese e-commerce giants Temu and Shein. Both companies have leveraged this loophole to ship inexpensive clothing, furniture, and electronics directly from China to American consumers. With the loophole now closed, these companies may face challenges in maintaining their market presence in the U.S.
In conjunction with these changes, the U.S. Postal Service (USPS) announced on Tuesday that it would suspend the acceptance of parcels from China and Hong Kong Posts. This suspension was initially set to be "until further notice," as stated in a notice posted on the USPS website. However, just hours after implementing this suspension, the USPS resumed accepting inbound mail and packages from China and Hong Kong.
The USPS explained that the suspension of services was a measure to align with new tariff regulations and ensure smooth package delivery.
"The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery." – The U.S. Postal Service
The USPS's swift reversal on the suspension highlights the complexity and rapid developments in international trade policies under the Trump administration. These measures reflect an ongoing effort to address trade imbalances and protect domestic industries while managing diplomatic relations with key trading partners.