The US postal service USPS has temporarily stopped shipping parcels from China and Hong Kong, greatly affecting e-commerce companies such as Shein and Temu. The move follows former President Donald Trump's decision to scrap the trade exemption that allowed products to be shipped duty-free to the US. This arrangement allowed consumers to avoid import duties on orders under $800.
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The termination of the so-called minimis scheme is a response to China's failure to stop exporting fentanyl to the US. The decision directly affects companies that rely heavily on the scheme, such as Shein and Temu, as an estimated 30 percent of US parcel imports were sent through this exemption.
USPS has confirmed that letters and 'flat' mail from China and Hong Kong will still be processed, but the suspension of parcel shipments will continue until there is a solution to the new import duties.
Meanwhile, the European Union is also introducing stricter customs controls on goods shipped directly to consumers from outside Europe, which may also affect companies such as Shein and Temu.
Source: Retail Trends