US Postal Service flip-flops on Hong Kong-China packages, lifting a ban imposed a day earlier

By ZEN SOO, AP Business Writer

HONG KONG (AP) — The U.S. Postal Service is reversing course a day after placing a ban on all inbound packages from China and Hong Kong.

The post office had announced Tuesday that it would no longer accept parcels from the China and Hong Kong after the U.S. imposed an additional 10% tariff on Chinese goods and ended a customs exception that allowed small value parcels to enter the U.S. without paying tax.

The Postal Service reversed course Wednesday but gave no reason. It said it would work with Customs and Border Protection to implement a collection process for the new China tariffs to avoid delivery disruptions.

The post office pointed to the short prepared statement on the reversal when asked for more details about the reversal Wednesday by The Associated Press.

The ban had the potential to create massive disruptions for online shopping platforms like Shein and Temu, popular with younger shoppers in the U.S. for cheap clothing and other products, usually shipped directly from China.

Cheap, direct postal service helps these companies keep costs low, as did the “de minimis” exemption that previously allowed shipments to go tax-free if their value is under $800.

The suspension by USPS would have likely have created delays in shipments and potentially higher prices for the companies that rely on rock-bottom pricing for huge sales.

What exactly did the USPS announce?

One day after the U.S. Postal Service said in a notice that it would stop accepting inbound parcels from the China and Hong Kong Posts until further notice, it said Wednesday that would “continue accepting all international inbound mail and packages from China and Hong Kong.”

Letters and flats — mail that measures up to 15 inches (38 centimeters) long or 3/4 inches (1.9 centimeters) thick — were not included in the brief ban.

Why did it happen?

The USPS did not give a reason for the ban Tuesday, but the suspension came after Trump closed the “de minimis” customs exemption this week for China that allowed shoppers and importers to avoid duties on packages worth below $800.

The exemption was removed as part of an executive order to levy a 10% tariff on Chinese goods.

U.S. Customs and Border Protection previously stated that it processes an average of over 4 million “de minimis” imports each week.

It also gave no reason for its decision on Wednesday and did not immediately respond to requests from The Associated Press for comment.

What’s likely to happen next?

Under the new tariffs imposed by Trump on Chinese imports, analysts say consumers are likely to see price hikes and potential delays in shipments from companies like Shein and Temu.