Credited from: TIME
Americans are expected to see an uptick in prices for popular products from Chinese e-commerce platforms such as Shein and Temu, as the USPS announced it would no longer accept incoming parcels from China and Hong Kong. The suspension follows the U.S. government imposing an additional 10% tariff on Chinese goods and ending a customs exemption that allowed low-value shipments to enter the country tax-free. This policy change directly affects consumers who heavily patronize these retailers for inexpensive clothing and goods.
The USPS's recent notice revealed that it will halt accepting inbound parcels from the China and Hong Kong posts until further notice, although standard letters and packages under certain dimensions remain unaffected. The move is perceived as striking a blow to e-commerce, especially for retailers like Shein and Temu, which thrive due to cheap shipping options.
This suspension follows Trump's executive measures aimed at tightening customs practices, significantly impacting an estimated four million low-value imports that previously benefitted from the "de minimis" exemption, which allowed items valued below $800 to bypass tariffs. Notably, consumers and businesses who relied on this shipping infrastructure will now have to navigate potential delays and increased costs as logistics change adaptively.
Experts predict that Shein will experience more substantial challenges compared to Temu, which operates with a semi-consignment shipping model, allowing it to send bulk orders to the U.S. before fulfilling them domestically. Jacob Cooke, CEO of WPIC Marketing + Technologies, noted, “Compared to Temu, Shein relies more heavily on USPS for direct-to-consumer shipping from China,” indicating that this change may **[increase logistics costs](https://www.npr.org/2025/02/05/g-s1-46542/usps-parcels-hong-kong-china)** and disrupt Shein's competitive pricing strategy.
Chinese government representatives, including Foreign Ministry spokesperson Lin Jian, have voiced the need for their nation to protect its companies against what they perceive as politicization of trade, calling on the U.S. to cease its practices that hamper Chinese businesses. Global economic dynamics, especially concerning e-commerce, are under intense scrutiny as these new restrictions unfold.
In light of current conditions, it remains unclear how long the USPS suspension will last, yet analysts suggest that Shein and Temu might adapt by increasing reliance on private shipping carriers. Long-term business strategies could also include expanding warehouse space within the U.S. or further utilizing bulk shipping methods to mitigate rising logistics costs. However, for Shein, this transition may introduce disruptions, as its business model rapidly innovates and introduces new products.
For more information on the implications of these developments, visit AP News or read detailed analyses at Time.