US Postal Service Suspends Parcels from China and Hong Kong
The US Postal Service (USPS) has suspended the incoming parcels from China and Hong Kong for the time being and Beijing has accused of having ‘unreasonable suppression’. It has created more dust on the already hot coals of the trade war between the United States and China, and has created uncertainties for consumers and businesses that use postal services to trade globally. The USPS has not indicated the reason for the suspension, but it is thought to be related to the removal of the de minimis exemption for duties on small packages and new tariffs on Chinese products. It is expected to impact large e-commerce platforms such as Shein and Temu which had accounted for almost 30% of the small packages delivered to the US in 2023. Beijing was quick to react and expressed its strong protest’ against the decision. The Foreign Ministry of China spokesperson Lin Jian accused the US of politicizing trade and demanded an end to the ‘unreasonable suppression’ of Chinese companies. He said that the trade conflicts should not be escalated as it would only hurt both the countries and there are no winners in a trade war. In response, China has levied counter-tariffs on important products including coal, LNG, crude oil, and agricultural equipment. Also, Beijing has introduced new restrictions on the export of rare metals such as tungsten and bismuth which are used in various industries. Global trade tensions are expected to lead to more market turmoil, according to analysts. In the meantime, Donald Trump has kept a strong position and has imposed new 10% tariffs on Chinese imports and has said that he has no hurry to meet with Chinese President Xi Jinping. For now, the postal suspension shows that effects of US-China trade war are spreading to other areas and may have significant implications for global supply chain and e-commerce.
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