Donald Trump’s trade war: China blasts US Postal suspension, accuses Washington of disregarding fentanyl crisis

  • The United States Postal Service has reversed its decision to suspend parcels from China after facing strong condemnation from Beijing. The move, which could have disrupted e-commerce giants like Temu and Shein, was criticised by China as an act of “unreasonable suppression”.

Livemint
Published5 Feb 2025, 09:18 PM IST
US Postal Service reverses ban on China shipments following Beijing’s heated response over fentanyl (Photo by Patrick T. Fallon / AFP)
US Postal Service reverses ban on China shipments following Beijing’s heated response over fentanyl (Photo by Patrick T. Fallon / AFP)(AFP)

After Beijing’s outcry, the United States Postal Service (USPS) has reversed its decision to suspend parcels from China and Hong Kong. The initial move, which had the potential to disrupt the operations of major e-commerce platforms like Temu and Shein, prompted fierce backlash from the Chinese government.

Beijing accuses US of "suppression" and "politicising" trade

The Chinese government condemned the US Postal Service decision, accusing the United States of "unreasonable suppression" and politicising trade and economic matters amid the ongoing trade war. Beijing's anger was fueled by what it described as an unfair action that could harm Chinese companies engaged in international trade. Foreign Ministry spokesperson Lin Jian accused the US of using trade issues as "tools" for broader political aims.

USPS reversal amid US-China trade war

Amid escalating tensions in the trade war, the US Postal Service announced that it would reverse the suspension and continue accepting all inbound mail and parcels from China and Hong Kong. While the initial suspension had raised alarms over potential delays and price hikes for companies like Shein and Temu, the reversal is expected to ease concerns about disruptions to international shipments.

The reversal came without a clear explanation, though the agency indicated it would work with US Customs and Border Protection to implement a new tariff collection mechanism to prevent delivery disruptions.

A USPS spokesperson emphasised that while letters and flats under 15 inches long and 3/4 inches thick were excluded from the initial ban, the broader halt on parcels had been lifted.

Tariffs and Fentanyl dispute prompt US action

The move to suspend certain mail shipments came in the wake of President Donald Trump's imposition of a blanket 10% tariff on Chinese goods, a measure linked to the ongoing fentanyl dispute in the United States. The trade war between the US and China has intensified, with Washington citing China’s role in the flow of illegal drugs as part of the rationale behind the new tariffs.

The US Postal Service initially announced the suspension of certain shipments from China and Hong Kong and the end of a customs exception for low-value parcels. The suspension had raised concerns for major e-commerce platforms like Shein and Temu, which rely heavily on direct shipments from China for their cost-effective business models.

The suspension could have led to delays and higher costs for US customers, potentially shaking up the retail landscape, particularly for younger shoppers who favor these platforms for inexpensive clothing and products.

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Easing concerns for E-commerce giants

The reversal was a relief for companies like Shein and Temu, which rely on cheap, direct shipping from China. These platforms had been concerned that the suspension would not only disrupt their supply chains but also lead to increased costs for US consumers.

Though the suspension has been lifted, the situation highlights the ongoing tensions between the US and China, especially regarding trade and tariffs.

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First Published:5 Feb 2025, 09:18 PM IST
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