The US Postal Service (USPS) has reversed its decision to stop accepting inbound parcels from China and Hong Kong, just a day after announcing the suspension. The move comes in response to President Donald Trump's executive order revoking the de minimis exemption for shipments from China, which allows for the collection of import duties and taxes on parcels valued below $800.

The initial decision to suspend shipments was met with concerns over the impact on e-commerce companies, particularly those that rely heavily on the loophole to ship cheap goods directly to consumers while avoiding import duties. Companies such as Temu, Shein, and Amazon had been taking advantage of the exemption, which accounted for over 1.3 billion parcels shipped into the US in 2024.

However, USPS has now stated that it will "continue accepting all international inbound mail and packages from China and Hong Kong Posts." The service is working closely with US Customs and Border Protection to implement an efficient collection mechanism for the new China tariffs, aiming to minimize disruptions to package delivery.

The reversal is likely to come as a relief to e-commerce companies, but the impact of the new tariffs and collection mechanism remains unclear. Delays and increased costs for shipping are expected, as courier and shipping companies will need to develop new processes to inspect a large volume of Chinese shipments and collect duty and tariffs.

The European Commission has also taken note of the situation, renewing calls for the EU to implement its own customs reform that would remove its duty-free exemption for packages valued below €150. The commission has also suggested applying a handling fee for e-commerce shipments imported directly to consumers as a way of recouping the costs of inspecting and processing the parcels.

The development highlights the ongoing trade tensions between the US and China, with the US seeking to level the playing field for domestic businesses. The move is likely to have far-reaching implications for the e-commerce industry, with companies needing to adapt to the new regulations and find ways to mitigate the increased costs and complexities.

As the situation continues to unfold, it remains to be seen how the new tariffs and collection mechanism will affect the global e-commerce landscape. One thing is certain, however: the days of cheap, duty-free shipping from China are numbered, and businesses will need to be agile to stay ahead of the curve.