The U.S. Postal Service has announced the resumption of package acceptance from China and Hong Kong, marking a swift reversal following a temporary halt in shipping services from these regions. This decision came shortly after President Donald Trump imposed a 10 percent tariff on Chinese imports, which took effect on Tuesday.
Trade War Escalation
China, a key trading partner of the U.S., retaliated by announcing 15 percent tariffs on U.S. liquefied natural gas and coal, as well as a 10 percent tariff on agricultural equipment, crude oil, cars, and initiating investigations against tech giants like Google. However, the enforcement of these measures is deferred until Feb. 10, allowing room for negotiation between the two nations.
Global Impact
Similar tariffs were expected to impact Canada and Mexico; however, through diplomatic dialogues, these countries managed to postpone them for a month. The initial suspension of postal services raised concerns about disruptions in e-commerce and global supply chains.
President Trump's tariff directive also eliminated the de minimis exemption, which previously allowed companies to avoid tariffs on packages valued at $800 or less shipped directly to U.S. consumers.
Market Influence
Popular Chinese retailers like Shein and Temu have leveraged this exemption to flood the American market with discounted clothing and household items. According to a 2023 House report, these retailers were responsible for over 30 percent of daily packages sent to the U.S. under this provision.
The temporary suspension by the Postal Service could have increased shipping expenses for American companies such as Amazon, which rely on Chinese imports for certain products.
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