US Postal Service suspends packages from China, Hong Kong - Decision bans duty-free shipments of small goods
The U.S. Postal Service said it would temporarily suspend packages from China and Hong Kong after President Donald Trump ended a trade provision that allowed companies like Temu and Shein to ship low-value orders duty-free.
The Trump administration imposed an additional 10% tariff on Chinese goods, which took effect on Tuesday, and removed the "de minimis" exemption that allows American buyers to avoid paying tariffs on shipments under $800.
The additional tariffs and elimination of "de minimis" pricing follow repeated warnings from Trump that Beijing was not doing enough to stop the flow of fentanyl, a dangerous synthetic opioid, into the US.
Reuters previously reported that Chinese suppliers use the duty-free provision to export chemical materials for fentanyl, disguising them as equipment and other low-cost goods.
China's Foreign Ministry called for dialogue and consultation between Beijing and Washington, adding that reducing demand for drugs in the US and increasing law enforcement cooperation was the fundamental way to solve the fentanyl crisis.
Fashion retailer Shein and online store Temu, which sell products ranging from toys to smartphones, have grown rapidly in the US, thanks in part to the “de minimis” exemption.
The two firms together probably accounted for more than 30% of all packages shipped to the United States each day under the de minimis provision, the US Congressional Committee on China said in a June 2023 report.
Almost half of all packages shipped at de minimis prices come from China, according to the report.
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