The US Postal Service (USPS) unexpectedly halted package deliveries from China and Hong Kong, causing turmoil in the global logistics sector. The decision was reversed within 24 hours, highlighting the chaos brought by Trump's executive orders. Trump's removal of a duty-free exemption for imports under $800, particularly impacting e-commerce giants like Shein and Temu, has forced the USPS and Customs and Border Protection to grapple with the influx of low-value parcels from these countries.
Late on Tuesday, the US Postal Service announced that it was suspending delivery of packages from China and Hong Kong. Less than 24 hours later, as the shock reverberated through the global logistics sector, it reversed the decision.
The deliberate duty-free loophole in America’s customs fence has been increasingly exploited by e-commerce companies, most notably China’s Shein and Temu. Of the 4 billion or so small parcels that entered the US last year, the two Chinese companies accounted for about 30 per cent, or about 1.2 billion of them.
Chinese logistics companies are already saying they will have to increase their charges, with one saying it would withhold 30 per cent of the value of the order plus Rmb20 to compensate for the new costs. . Indeed, knowing that the sheer magnitude of their successes was starting to generate angst in the markets they have gatecrashed, the two companies have been starting to set up distribution centres in the US and elsewhere to pursue the more conventional model of importing wholesale and then distributing the products via their own logistics networks.
TARIFFS E-COMMERCE CHINA LOGISTICS US POSTAL SERVICE
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