USPS Triumphantly Resumes Parcel Deliveries from China
The United States Postal Service (USPS) has successfully resumed parcel deliveries from mainland China and Hong Kong. This comes after a temporary suspension caused by changes in import tax regulations initiated by former President Donald Trump. These changes included increased tariffs on Chinese goods and the removal of a previous policy allowing tax-free entry for packages valued at $800 or less. This policy change significantly impacted major Chinese retailers, including popular online platforms like Temu and Shein.
Impact of Trade Rule Changes
The loophole allowing tax-free shipments had been a boon for fast fashion and low-cost goods retailers, but it raised concerns among domestic retailers and governments over lost tax revenue. Nick Stowe, CEO of Monsoon Accessorize, expressed support for the US’s decision on the BBC’s Today programme, highlighting grievances from retailers in the UK, EU, and US regarding Shein’s use of the loophole.
- Tariff Increases: The US’s new policy, which took effect on Tuesday, eliminated tax-free shipments under the “de minimis” exemption. This resulted in an overnight halt of parcels from China, with USPS resuming operations on Wednesday.
- Coordination Efforts: USPS has been working closely with US Customs and Border Protection to ensure minimal disruption to package deliveries. Despite the changes, letter mail remains unaffected by Trump’s policy adjustments, which include a 10% tariff on all Chinese imports.
Global Reactions and Future Implications
The European Union is also considering similar measures, holding online platforms like Temu and Shein accountable for selling unsafe products. In the EU, parcels worth less than €150 are exempt from taxes, a practice criticized for providing an unfair advantage to certain firms. The European Commission reported that 91% of low-value items imported into the EU originate from China, with plans to increase customs checks on e-commerce shipments.
- EU Initiatives: The EU has launched a joint investigation into Shein, suspecting violations of consumer protection laws, with Shein expressing willingness to cooperate.
- US and China Tensions: Almost half of the parcels entering the US under de minimis exemptions are from China. Changes to these exemptions were already in progress under President Joe Biden, but Trump’s policies extended tariffs to all Chinese imports.
In retaliation, China announced its own levies and placed PVH, the company behind brands like Calvin Klein, on its “unreliable entity” list. Despite expectations for dialogue between Trump and Chinese President Xi Jinping, Trump stated he was in “no rush” for talks.
Conclusion
The resumption of parcel deliveries by USPS marks a significant development in the ongoing trade dynamics between the US and China. As both countries navigate these changes, the global e-commerce landscape continues to evolve. For further insights into strategic responses to US tariffs, explore China Strategically Responds to US Tariff Threats.
This news has been sourced from www.bbc.com. Readers are encouraged to share their thoughts on these developments and stay updated on future trade policy changes.
