Editor's Note: USPS has resumed delivery of China, Hong Kong parcels after brief suspension.
The U.S. postal service has stopped accepting all parcels from China and Hong Kong indefinitely, something experts say could increase costs to consumers in the long run.
The change comes after the Trump administration imposed a 10 percent tariff on imports from China and ended an exemption that allowed smaller shipments to be tax free. Trade with China, as well as Mexico and Canada, has been a major issue for President Donald Trump.
“As a matter of principle, I want to point out that we urge the United States to stop politicising trade and economic issues and using them as tools, and to stop the unreasonable suppression of Chinese companies,” Lin Jian, a ministry spokesperson, said at a press conference.
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The Trump administration said in a statement over the weekend that the tariff is due to distribution of drugs and money laundering.
“The orders make clear that the flow of contraband drugs like fentanyl to the United States, through illicit distribution networks, has created a national emergency, including a public health crisis. Chinese officials have failed to take the actions necessary to stem the flow of precursor chemicals to known criminal cartels and shut down money laundering by transnational criminal organizations,” the White House said.
Trump has also said that he is considering privatizing the post office.
According to a government report, 30 percent of small packages in 2023 came into the country from two Chinese e-commerce companies, Shein and Temu. This change means customers could see a jump on regularly dirt cheap prices.
"Compared to Temu, Shein relies more heavily on USPS for direct-to-consumer shipping from China, and without this channel, it will have to rely more on private carriers," Jacob Cooke, CEO of e-commerce marketing agency WPIC Marketing + Technologies, told the Associated Press. "That will increase logistics costs, which along with the recent scrapping of the de minimis exemption for most products from China, could erode its price advantage," he said, referring to the policy that allowed shipments with a value under $800 to enter the country tax free.
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Shein and Temu’s labor practices have come into question as well. Semafor reported on Tuesday that the Trump administration is considering adding Shein and Temu to the Department of Homeland Security’s “forced labor,” or human trafficking, list. Both companies have denied the claims.