*** USPS Halts Parcel Deliveries from China and Hong Kong Amid Tariff Dispute | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

USPS Halts Parcel Deliveries from China and Hong Kong Amid Tariff Dispute

TDT | Manama
Email : editor@newsofbahrain.com

The United States Postal Service (USPS) has announced the suspension of parcel deliveries from mainland China and Hong Kong until further notice. While letters will remain unaffected, the move marks a significant shift in U.S.-China trade relations amid escalating tensions.

The USPS did not provide a specific reason for the suspension. However, the decision follows President Donald Trump's recent imposition of a 10% tariff on all goods imported from China. The executive order also removed a long-standing exemption that allowed goods valued at $800 (£641) or less to enter the U.S. duty-free.

In response, Beijing has retaliated with tariffs on American imports. Starting February 10, coal and liquefied natural gas (LNG) shipments to China will be subject to a 15% levy, while crude oil, agricultural machinery, and large-engine automobiles will face a 10% tariff.

Trade analysts believe the halt in parcel services could have broad implications for e-commerce. "Trump's tariff changes are especially sharp for goods previously shipped directly from China to the U.S. via e-commerce," said trade expert Deborah Elms.

According to a 2023 report by the U.S. Congressional committee on China, nearly half of all parcels entering the U.S. under the de minimis exemption originated from China. U.S. officials have raised concerns that the high volume of such shipments made it difficult to properly screen them for illegal goods.

President Trump is expected to speak with his Chinese counterpart, Xi Jinping, in the coming days, as trade tensions continue to rise.