The U.S. Postal Service (USPS) has backtracked on its decision to temporarily stop accepting packages from China, just hours after announcing the suspension. The move comes in response to new U.S. tariffs on Chinese imports laid down by President Donald Trump, including the elimination of the “de minimis” rule, which previously allowed packages valued under $800 to bypass duties.
The ban threatened to disrupt major online retailers like Shein and Temu, which have built their U.S. customer base—especially among younger shoppers—by offering low-cost clothing and products shipped directly from China.
In a statement on its website, USPS confirmed it is now working with Customs and Border Protection (CBP) to create an efficient system for collecting tariffs on Chinese shipments.
“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.”
Affordable shipping through USPS, combined with the now-eliminated “de minimis” exemption, helped these companies keep prices low by avoiding import taxes on packages under $800.
Had the suspension remained in place, it could have led to shipping delays and increased costs, putting pressure on businesses that depend on ultra-low prices to drive high sales volumes.
The End of De Minimis and Its Impact
The end of the de minimis exemption means all shipments from China, regardless of value, are now subject to U.S. tariffs and duties. This shift is significant given the volume of packages that previously qualified under the rule—over 1 billion in 2023 alone, according to the Congressional Research Service. The majority of those shipments, more than 60%, originated from China.
Chelsey Tam, a senior equity analyst at Morningstar, noted that USPS likely needed time to adjust to the new tax collection requirements. “It will take time to set something up, as the U.S. receives 4 million de minimis packages a day,” she explained.
The removal of the exemption has been a long-standing concern among U.S. lawmakers, who argue that Chinese companies like Shein and Temu have used it to sidestep tariffs, undercutting domestic retailers and reducing tax revenue.
While the end of de minimis won’t stop cross-border e-commerce, it introduces new challenges for Chinese retailers and their U.S. customers. Victor Gao, vice-president of the Centre for China and Globalisation, told the South China Morning Post that the shift “won’t kill cross-border e-commerce, but it will be more inconvenient.”
