The US Postal Service (USPS) has suspended parcel acceptance from mainland China and Hong Kong indefinitely. The decision, which excludes letters, comes as the US tightens rules on low-value imports.

On Tuesday, new regulations closed a tax loophole on packages worth $800 or less. Previously, these parcels entered the US tax-free. Donald Trump implemented the change as part of his trade measures, including a 10% tariff on all Chinese goods. Goods like clothing and toys are now subject to the additional tariff.

Major Chinese e-commerce platforms, such as Shein and Temu, had benefited from this loophole, reaching millions of US consumers. US Congress highlighted that nearly half of all parcels entering under de minimis exemptions were from China. The loophole allowed unchecked parcels to flood the market, raising security concerns over possible illegal goods.

Nick Stowe, CEO of Monsoon & Accessorize, supported the changes. He said the tax exemption enabled Chinese retailers to undercut competitors worldwide. “It’s been a major complaint of retailers in the US, UK, and Europe,” he explained, criticizing Shein for using the loophole to grow at an industrial scale.

In retaliation, China announced new tariffs on certain US imports. Starting February 10, coal and liquefied natural gas (LNG) will face a 15% tax, while crude oil, agricultural machinery, and large-engine vehicles will see a 10% tariff.

Trump’s recent announcement expands existing tariffs to cover all imported Chinese goods. This shift builds on changes already underway under President Joe Biden. Trade expert Deborah Elms highlighted that goods previously shipped directly via Chinese e-commerce now face harsher penalties.

Trump is expected to discuss trade matters with Chinese President Xi Jinping soon.