US Postal service reverses decision to halt China shipments

Resumption capped hours of confusion after suspension was announced without explanation

Last updated:
A USPS worker delivers packages in New York
A USPS worker delivers packages in New York
Bloomberg

The US Postal Service said Wednesday that it's accepting "all international inbound mail and packages" from China and Hong Kong Posts, hours after the agency announced a halt on some shipments.

"The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery," the postal service said in an emailed statement. The acceptance of packages is effective Feb. 5.

The resumption of normal service capped about 12 hours of confusion after the agency said late Tuesday that it would temporarily freeze the shipments without providing an explanation. The abrupt move threatened to exacerbate a trade war and weighed on shares of retailers such as Alibaba Group Holding Ltd. and JD.com Inc.

The saga comes after President Donald Trump revoked a "de minimis" rule for China, which previously allowed small packages under $800 to enter the US duty-free. This exemption, often used by Chinese-linked e-commerce companies, was removed as part of a new 10 per cent tariff on goods from China and Hong Kong, which took effect just after midnight Tuesday Washington time.

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