Trade Regulation Changes Impact Retailers and Consumers

The U.S. Postal Service (USPS) announced it will stop accepting packages from China and Hong Kong. However, letters and flat mail remain unaffected.

This decision follows a 10% tariff imposed by the Trump administration on Chinese goods. In response, China applied tariffs on American products, escalating trade tensions.

Additionally, the government removed the de minimis exemption, which allowed retailers like Shein and Temu to ship low-value packages without tariffs. This policy had ensured competitive prices.

Removing the exemption and halting packages may cause delays and increased costs for consumers. Delivery times could extend by 5 to 10 days.

The 600% rise in de minimis shipments over the last decade complicated trade regulation enforcement and consumer protection measures.

To adapt, Shein and Temu are opening distribution centers in the U.S. and factories in Mexico to reduce the impact.

Meanwhile, retailers like Amazon could benefit as Chinese companies lose their competitive edge, strengthening its online market position.

The full effects remain uncertain. However, low-income consumers may face higher prices and longer delivery times.