USPS suspends parcels from China and Hong Kong

Americans will probably pay more for products from popular Chinese e-commerce platforms, such as Shein and this, because the American postal service said that it would stop accepting packages from China and Hong Kong.

The transfer was announced on Tuesday, coming after the US imposed an additional 10% tariff on Chinese goods and ended a customs exception, which allowed small plots to enter the US without paying tax. Canada and Mexico managed to negotiate a monthly relief with 25% tariffs threatened by US President Donald Trump.

This will probably affect online shopping places, such as Shein and this, popular among younger buyers in the US to obtain cheap clothing and other products, usually sent directly from China.

Cheap, direct postal service helps these companies maintain low costs, as well as the “de minimis” release, which previously allowed shipments without tax, if their value is below USD 800.

Temporary suspension by USPS will probably delay the parcels and may mean higher prices in the long term.

What exactly announced USPS?

The postal service in the USA said in a notification that it would temporarily stop taking hits coming from China and Hong Kong posts until further notice.

This does not affect the letters and apartments – a mail up to 15 inches (38 centimeters) or 3/4 inches (1.9 centimeters).

Why did it happen?

USPS did not provide reasons in a short announcement, but the suspension took place after the “de minimis” customs exemption was closed this week, which allowed the buyer and importers to avoid duties in packages worth below USD 800.

The exemption was removed as part of an executive order to apply a 10% tariff to Chinese goods.

American customs and protecting borders previously stated that it processes an average of over four million “de minimis” every week.

What is the influence and who is most affected?

Both consumers and companies will no longer be able to send packages to the USA from Hong Kong or China.

This movement will probably affect Chinese e-commerce companies, such as Shein and this, although Shein will probably be more affected, according to Jacob Cooke, the general director of the E-commerce Marketing Marketing Agency WPIC Marketing + Technologies.

Both companies have a significant market share in the USA

“Compared to this, Shein is more based on USPS to send direct to the consumer from China and without this channel he will have to rely more on private carriers,” Cooke said.

“This will increase the logistics costs, which, along with the recent scrapping of de minimis exemption, for most products from China may reduce price advantage.”

Cooke said that he works in a semi -sale model and often sends mass orders to the US before he fulfills orders in the country.

“The model of obtaining cheap goods this should also enable the platform to absorb higher logistics costs and will remain competitive prices,” he said.

Shein and they did not comment on this right away.

A spokesman for the Chinese Ministry of Foreign Affairs, Lin Jian, said that China would take “necessary funds” to protect their companies, and called the US to “cease the politicality of economic and commercial problems and to use them as a tool and to stop the unjustified suppression of Chinese companies.”

What are the possible working ways of companies?

Cooke said it was not clear how long the USPS suspension would be permanent, but the effort aimed at combating the de minimis electromunia seems to be a long -term change in politics.

“Shein and they will simply have to rely on private carriers as a bypass of the users’ suspension,” he said.

In the long term, Shein can accelerate the warehouse extension in the US, while it can double his half -saved model. Cooke said that by mass shipping to the USA and fulfilling orders in the country, logistics costs can be reduced.

“Shipping loose to the USA and fulfillment in the country may reduce logistic costs, but for Shein it is a long-term disruption of their business model, which depended on the rapid development of new SKU and sending them directly to consumers,” Cooke said.