US Postal Service restarts China deliveries as Trump tightens import tax rules

The US Postal Service (USPS) has resumed accepting parcels from mainland China and Hong Kong, reversing a brief suspension triggered by new trade measures introduced by President Donald Trump.

The move follows a dramatic shift in America’s import duties, with the White House scrapping an exemption that previously allowed packages worth under $800 (£641) to enter the country tax-free.

The rapid policy change caused temporary disruption to cross-border shipments. USPS acknowledged the brief suspension of parcel deliveries from China but said it is now “working closely” with US Customs and Border Protection (CBP) to collect tariffs efficiently and minimise delays. Letters are unaffected by the new rules, but the import of consumer goods, notably fashion items, now faces higher taxes and stricter checks.

Online retailers Shein and Temu are among those that had benefited most from the former duty-free threshold, which had also helped them expand rapidly in the UK and the EU. Critics argue that waiving duties on small parcels undercuts domestic retailers and deprives governments of vital tax revenue. Nick Stowe, chief executive of Monsoon Accessorize, praised the US clampdown, stating that Shein “exploited this loophole” to build a “business at an industrial scale”.

Other countries are following the US example. The EU has plans to increase customs checks on so-called “low-value” shipments—currently exempt on items worth less than €150 (£124)—and has warned fashion platforms such as Shein and Temu they will be held liable if unsafe products are sold on their websites. According to the European Commission, 4.6 billion low-value items were imported into the EU last year, with 91% originating in China.

UK retailers, including Superdry boss Julian Dunkerton, want similar reforms to close what they see as an unfair gap in import duty. Under British rules, parcels worth less than £135 sent directly to individual shoppers are currently duty-free. “The rules weren’t made for a company sending individual parcels [and] having a billion-pound turnover in the UK without paying any tax,” Dunkerton said, arguing that e-commerce giants should pay their “fair share”.

Washington’s broader tax overhaul includes a 10% tariff on all goods imported from China. In response, Beijing has threatened retaliatory measures against US businesses. With tensions escalating on both sides, and President Trump saying he is in “no rush” to meet Chinese president Xi Jinping, further disruption to global supply chains may lie ahead.