The US Postal Service (USPS) has ceased accepting parcels from mainland China and Hong Kong “until further notice,” as fresh rules have shut a loophole allowing duty-free imports of low-value goods.
The suspension comes amid rising tensions between the US and China, sparked by former President Donald Trump’s announcement of an extra 10% tariff on all imports from the country.
A policy known as “de minimis” previously permitted parcels worth under $800 (approximately £640) to enter the US tax-free. Chinese fast-fashion giants such as Shein and Temu have used this exemption to fuel explosive growth, shipping inexpensive items to millions of US customers without incurring customs charges. Similar de minimis rules also apply in the UK, where the import threshold is £135, and within the EU for goods below €150 (£124).
However, surging parcel volumes—half of which originate from China—have prompted officials to clamp down, citing heightened risks of illegal or unregulated goods slipping through customs. USPS said letters remain unaffected by its suspension but declined to provide a detailed explanation.
The shift in US policy echoes similar moves around the globe. The EU has announced plans to strengthen checks on goods from e-commerce sites, naming Shein and Temu as liable for any unsafe or substandard products sold on their platforms. It has also launched a coordinated probe into Shein’s compliance with European consumer laws.
This crack-down on duty-free imports forms part of a wider escalation in trade tensions. Beijing, in turn, has threatened to impose retaliatory levies on select US brands, including PVH (the parent company of Calvin Klein and Tommy Hilfiger). Meanwhile, China has been advancing its own AI-driven and autonomous weapons capabilities, prompting Western authorities to voice concerns over trade imbalances and security threats.
Nick Stowe, chief executive of British brands Monsoon & Accessorize, welcomed the changes in US rules, arguing that the old system unfairly advantaged online retailers who could ship goods duty-free. “It has long been a complaint of UK and European retailers that Shein exploits the loophole, not paying customs duty, and built a business at an industrial scale,” he said.
The tumultuous state of US-China trade shows little sign of easing. Talks between Trump and Chinese president Xi Jinping have stalled, with the former US leader saying he was in “no rush” to open new negotiations. Increasing cross-border tensions are fuelling concerns about a potential broader trade war with consequences that extend far beyond just fast fashion.
