The U.S. Postal Service (USPS) said on Feb. 5 that it was reversing course and lifting a suspension on inbound parcels from China and Hong Kong that went into effect on Tuesday.
The USPS temporarily halted the acceptance of parcels from China and Hong Kong after the United States imposed an additional 10 percent tariff on Chinese goods. This included the end of a customs exception that allowed small-priced parcels to enter the country without paying taxes.
The parcel service will work with U.S. Customs and Border Protection (CBP) to deploy a collection process to avoid delivery disruptions amid the new China tariffs, the USPS said on Wednesday.
Tuesday’s service suspension, which took effect immediately, did not affect letters and flats—such as large envelopes, newsletters, and magazines—sent from China and Hong Kong, according to the agency’s notice. The USPS did not offer reasons for the suspension and declined to comment further when asked by The Epoch Times.
The move came as a 10 percent tariff on China went into effect on Feb. 4. Guidance issued by the CBP stated that all products imported from China and Hong Kong will be subject to an additional 10 percent ad valorem rate of duty starting Feb. 4. This duty is in addition to any existing duties, fees, exactions, and charges.
The taxes do not apply to items donated for humanitarian relief, including food, clothing, and medicine. Exceptions also extend to informational materials such as publications, films, posters, photographs, and tapes, according to the CBP.
However, the taxes will likely hit many items from Chinese e-commerce platforms such as Temu and Shein, which have become increasingly popular among U.S. consumers.
President Donald Trump signed an executive order on Feb. 1 suspending the duty-free exemption for low-valued shipments from China as part of an effort to curb the entry of fentanyl and its precursor chemicals into the United States.
Trump’s order states that numerous China-based companies “go to great lengths to evade law enforcement and hide illicit substances in the flow of legitimate commerce.” To conceal the actual contents of their parcels and the identities of distributors, the companies employ re-shippers in the United States, falsify invoices, and use deceptive packaging, it stated.
In his order, Trump said the Chinese communist regime failed to stop fentanyl from flowing into the United States despite efforts to resolve the crisis through bilateral dialogue. He criticized Chinese officials for failing to follow through with the actions needed to curb the flow of precursor chemicals to criminal cartels.
“The influx of these drugs to our Nation threatens the fabric of our society,” Trump stated. “The PRC [People’s Republic of China] plays a central role in this challenge, not merely by failing to stem the ultimate source of many illicit drugs distributed in the United States, but by actively sustaining and expanding the business of poisoning our citizens.”
The order will close the de minimis loophole, which has allowed duty-free entry of shipments valued under $800 into the United States. The move is expected to level the playing field for U.S. retailers competing against China-based online retailers like Temu and Shein.
China’s Ministry of Finance said on Feb. 4 that it will implement counter-tariffs on multiple U.S. products, including a 15 percent tariff on coal and liquefied natural gas products, as well as a 10 percent tariff on crude oil, agricultural machinery, and large-displacement cars. The measures will take effect on Feb. 10.
On the same day, China’s Commerce Ministry said that it was implementing export controls on metals crucial for defense and other industries, which took effect immediately. The Chinese State Administration for Market Regulation also announced that it was investigating Google for a suspected violation of anti-monopoly laws.
Trump is expected to speak with the Chinese president in the coming days, according to White House press secretary Karoline Leavitt. The U.S. president agreed to pause 25 percent tariffs on Canada and Mexico after they agreed to secure their borders.
Fentanyl, a powerful synthetic opioid, is the leading cause of death for Americans aged between 18 and 45. More than 107,000 overdose deaths were recorded in the U.S. in 2023, most of which were linked to fentanyl, according to the Centers for Disease Control and Prevention.
A report released last year by the U.S. House Select Committee identified China as the “ultimate geographic source” of the fentanyl crisis in the United States. The report found that Chinese companies are the main producers of precursors used to make fentanyl.
Austin Alonzo and The Associated Press contributed to this report.
Editor’s Note: This article has been updated to reflect the most recent developments from USPS.