U.S. Postal Service Suspends Parcel Shipments from China as Trump's Trade Restrictions Take Effect.

The suspension of parcel shipments from China by the U.S. Postal Service, effective February 4, marks a significant shift in the dynamics of international trade amid escalating tensions between the United States and China. This action is closely tied to President Trump's recent implementation of a 10% tariff increase on Chinese imports and the revocation of the de minimis tax exemption for low-value shipments. By halting incoming parcels from one of its largest trading partners, the U.S. Postal Service not only signals a firm stance against perceived unfair trade practices but also exacerbates existing strains in U.S.-China relations.

Mr. Trump ordered on Saturday that all goods leaving China starting on Tuesday must follow the rules for higher-value shipments. Until the change, parcels worth up to $800 apiece were not required to include detailed information on their contents and were not subject to tariffs.

The United States imports close to four million of such lower-value parcels a day with little or no customs inspection and no duties collected — with most of them coming from China.

The Trump administration and other critics have contended that allowing these packages into the United States has created a conduit for fentanyl, a synthetic opioid, and related supplies to enter the United States.

The National Foreign Trade Council has warned the move would put greater tax and inflationary pressure on small businesses.

Another downside, the trade association warned, would be to "shift the CBP's focus away from the border, where a vast majority of illegal substances and products are entering the country."

China has responded to Trump's tariff increase with export restrictions on strategic metals such as tungsten, an anti-monopoly probe into Google, and planned counter-tariffs on crude oil, machinery and large-engine vehicles.

Trump indicated on Tuesday he was in “no rush” to speak with Chinese leader Xi Jinping to defuse growing trade tensions, despite saying a day before that the two leaders could speak in the next 24 hours.

While it is unclear whether the de minimis suspension was related to the executive order, experts have told CNN the delivery of international parcels into the US would be “slowed down” if every package must be examined.

In retaliation, China has enacted its own export restrictions and counter-tariffs, further complicating an already intricate global trade landscape. As both nations engage in tit-for-tat measures, it becomes increasingly clear that such actions can lead to broader economic repercussions beyond their immediate context. Ultimately, this situation highlights the complexities and interconnectedness inherent in modern global commerce and underscores the need for careful consideration when implementing policies that have far-reaching implications.

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Sarah H

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