USPS reverses course, says it will continue accepting mail and packages from China

Not long after announcing it would no longer accept international inbound mail and packages from China and Hong Kong posts, in the United States Postal Service (USPS) reversed course today, saying that in conjunction with Customs and Border Protection (CBP) the parties are, “working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery.

The impetus for the USPS to initially say yesterday that it would no longer accept China-originated mail and packages stems from China placing retaliatory tariffs on United States exports to China, following additional 10% tariffs on Chinese goods exported to the U.S., which went into effect on Tuesday.

A Washington Post report observed that had USPS not changed its decision, it could have had a negative impact on retailers like Amazon, among others, with the report citing Kate Muth, executive director of the International Mailers Advisory Group, saying she expected customers to pay more and said parcels “may take a little longer to reach” them.

Paul Yaussy, Senior Director of Parcel Consulting, for San Diego-based Shipware, explained that this quick reversal is likely the result of USPS not having a clean and easy way of actually collecting the tariff and would have likely resulted in massive service delays as well as congestion at hubs as packages were being inspected. And he added that when President Trump announced the tariffs on China it also impacted the de minimis exemptions, meaning the USPS was going to have to collect duty, tax and tariff, as well as inspect, all packages from China, not just those over $800 in value.

“Importers will see tariffs applied on their carrier bills,” said Yaussy. “So, one great way to account for them is to try and get shipping cost reductions as a way to offset tariff increases, which you will then be able to see on your FedEx/UPS/USPS bill.”

In looking at the White House’s tariff strategy, Yaussy’s colleague, Adi Karamcheti, Consultant, Professional Services at Shipware, observed that the key takeaway on the tariffs is the uncertainty around them.

“President Trump is using them as a negotiating tool,” he said. “It's early, but he threatens to use them, gets concessions and pulls them back. It would appear this will be a threat he will leverage for the next four years for any and all sorts of reason. The only way to really plan for them as an importer is to assume they will impact you and to plan accordingly. The other key takeaway is that they are being applied not by industry, but by country.” 

Shipware Founder Rob Martinez explained that in looking at business process changes that come with tariffs, there needs to be a phase-in period that gives e-commerce operations and logistics operators time to adapt to the changes. 

“It's possible the administration has no idea the stress that President Trump'ss policies have on businesses and the entire supply chain—in particular, the on/off back-and-forth changing of the mind,” he said. “At least we have a reprieve with Canada and Mexico, but China—and other countries/regions soon to be targeted—produces undue strain and confusion. The new tariffs necessitate addition customs processing and tax collection, increasing the workload for delivery services and customs authorities. Moreover, businesses will soon seek alternative sourcing to mitigate costs, which are likely to lead to supply chain disruptions.  Didn't we learn anything coming out of COVID about the impact of supply chain disruption on inflation?  And ultimately, these tariffs are taxes on consumers, especially those that rely on affordable goods from ecommerce platforms like TEMU, Shein, AliExpress, Wish, DHgate and others.”