The United States Postal Service (USPS) has announced a temporary suspension of inbound packages from China and Hong Kong, effective immediately. This move is likely to create delays and problems for packages from other destinations as well, and may lead to increased costs for consumers.

The suspension comes as a result of President Trump's executive order imposing a 10% tariff on Chinese goods, which has closed a loophole known as the de minimis exception. This exception allowed packages valued below $800 to enter the US duty-free, and was widely exploited by e-commerce companies such as Shein and Temu, as well as online marketplaces like Amazon, Etsy, and eBay.

The restriction is temporary, but no end date has been set. Only packages and parcels are affected, with letters and envelopes continuing to ship as usual. The suspension is specific to the official postal services of China and Hong Kong, and does not apply to private courier and shipping services like UPS and FedEx. However, these companies are likely to struggle with the new requirements as well.

The challenge facing USPS and other shipping companies is managing the task of inspecting the large volume of shipments from China that are suddenly eligible for duty and import taxes. This is almost certain to create delays and problems for packages from other destinations, as USPS is frequently used by private shipping companies as the last-mile delivery service.

According to US Customs and Border Protection, over 1.3 billion parcels entered the US using the de minimis exemption in 2024, a number that has grown by more than 600% over the past decade. The exemption has not been removed entirely, but shipments from China are no longer eligible for it.

In addition to enabling low-cost e-commerce, the de minimis exemption has also posed safety concerns, making it easier for low-quality products to reach US buyers. In extreme cases, some e-bike and battery manufacturers have used the exemption to skirt safety regulations and avoid product inspection, resulting in hundreds of fires caused by faulty e-bike batteries in New York City alone.

China has already responded to Trump's tariffs, imposing levies on fuel and large vehicles shipped from the US, as well as restrictions on exports of certain rare minerals used in some technology manufacturing. The country has also initiated antitrust proceedings against Google and Nvidia, with probes into Intel and Apple rumored to be in the works.

The implications of this suspension are far-reaching, and may lead to significant changes in the way e-commerce companies operate. With the de minimis exemption no longer available, companies may need to rethink their business models and find new ways to keep costs low. Consumers, meanwhile, can expect to see delays and increased costs for packages shipped from China and Hong Kong.

As the situation continues to unfold, it remains to be seen how the e-commerce industry will adapt to these new regulations. One thing is certain, however: the temporary suspension of shipments from China and Hong Kong is just the beginning of a larger shift in the way goods are shipped and traded between countries.