Hours after announcing its ban on parcels from mainland China and Hong Kong, the United States Postal Service (USPS) reversed its decision and resumed deliveries.
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According to the Associated Press, USPS announced on Tuesday that it would no longer accept parcels from mainland China and Hong Kong after U.S. President Donald Trump imposed an additional 10% tariff on Chinese goods and ended a customs exception that allowed small-value parcels worth $800 or less to enter with the country without paying tax.
However, the U.S. Postal Service reversed its course on Wednesday without giving any reason. The agency claimed it is now working with Customs and Border Protection to implement a collection process for the new Chinese tariffs to avoid delivery disruptions.
The ban would have impacted Shein and Temu, two Chinese retailers that the ban has grown in popularity because they offer significantly cheaper goods than American-made items.
AP revealed that due to President Trump’s tariffs on Chinese imports, American consumers are likely to see price hikes and potential delays in shipment from Chinese retailers.
Letters from China are not impacted by any tariff changes announced by President Trump.
Shipping and courier giant DHL expressed concern about the tariffs, stating it was “working with our customers, suppliers, and other stakeholders to navigate these changes” to avoid disruptions to supply chains and “limit adverse impact on US importers and consumers.”
President Trump previously announced he was imposing a 10% tariff on China and a 25% tariff on Canada and Mexico. He is now holding off on the tariffs for Canada and Mexico for 30 days. However, the 10% tariff is still in effect for China.
President Trump Previously Said the Privatization of USPS Was Under Consideration
Just before he was sworn in as the 47th President of the United States, Donald Trump stated the USPS privatization was under consideration.
President Trump said that removing the government control over USPS was not the “worst idea.” It was also something he and his administration were looking into.
“There is a lot of talk about the Postal Service being taken private,” he explained. “It’s a lot different today, between Amazon and UPS and FedEx and all the things that you didn’t have. But there is talk about that. It’s an idea that a lot of people have liked for a long time.”
President Trump floated the idea of privatizing the USPS during his first presidential term.
“A privatized Postal Service would have a substantially lower cost structure, be able to adapt to changing customer needs, and make business decisions free from political interference,” the Trump administration stated in 2018. “And have access to private capital markets to fund operational improvements without burdening taxpayers. The private operation would be incentivized to innovate and improve services to Americans in every community.”