US Post Service Temporarily Suspend Packages From China And Hong Kong

JAKARTA - The United States Postal Service temporarily suspended packages from China and Hong Kong after President Donald Trump ruled on trade terms this week used by retailers including Emu and Shein's e-commerce apps to deliver duty-free low-value packages to the US.

The Trump administration imposed an additional 10% tariff on Chinese goods that took effect on Tuesday and closed the "de minimist" exemption that would allow US buyers to avoid paying fares for shipments under 800 US dollars.

Additional rates and deminist removal follow repeated warnings by Trump that Beijing is not doing enough to stop the flow of fentanyl, a dangerous synthetic opioid, to the US.

Reuters previously reported that Chinese suppliers used customs-free provisions to export chemicals for fentanyl by disguising them as gadgets and other cheap goods.

"This is huge. People waiting for orders from Amazon, Shein, and Temu don't know when they can receive the order," said Ram Ben Tzion, founder of Ultra Information Solution, the company behind the digital shipping inspection platform. Publican reported by Reuters, Wednesday, February 5.

"I hope this will be a short-term measure and replaced by a more measurable long-term measure," he said.

The USPS said the changes would have no impact on correspondence and 'flat' - a letter of length that could reach 38 cm or 3/4 inches thick (1.9 cm) - from China and Hong Kong. They did not immediately comment on whether this was related to Trump's changes to end de-minist shipments from China and other countries.

"USPS will take some time to sort out how to implement a new tax before allowing Chinese packages to arrive in the US again," said Chelsey Tam, senior equity analyst at Morningstar.

"This is a big challenge for them because there are 4 million de minimiser packages per day by 2024, and it is difficult to check all packages so it takes time." he added.

At Hong Kong's post office, a businessman who came to check the status of the package he sent to the US earlier expressed frustration after a staff member told him it was impossible to confirm where the shipment is now.

This political war has an impact on the local community, not only in Hong Kong but also elsewhere. This is very troubling for us, "John Khan, who has been running the trading business for nearly 30 years, told Reuters.

China's foreign ministry on Wednesday called for dialogue and consultation between Beijing and Washington.

Chinese authorities say reducing domestic demand for medicines and increasing law enforcement cooperation is a basic way for the US to resolve its fentanyl crisis.