MW After brief suspension, U.S. Postal Service to resume delivery of Chinese parcels

By Steve Goldstein

Temu owner PDD sees shares fall in premarket trade

The U.S. Postal Service on Wednesday said it will resume accepting parcels from China and Hong Kong after a brief suspension.

The move comes after the U.S. imposed an additional 10% tariff on Chinese goods, and importantly, ended a customs exception for small-value parcels under $800 to enter the U.S. without paying tax.

"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," said the Postal Service in a statement.

Izzy Rosenzweig, the chief executive of e-commerce fulfillment company Portless, posted on social media that big companies like Shein weren't actually affected by the suspension in the first place.

"The direct shipping from China now follows what is known as the 'direct injection' model," he said. "In the direct injection model, the packages are not handed over to USPS until the goods have been fully cleared at local facilities and delivered locally in the U.S. The international mail system is not used at all; it is essentially a local USPS drop-off."

Shares of Temu owner PDD $(PDD)$ fell 4% in premarket trade. Shein, another popular Chinese retailer, is not yet publicly traded as it contemplates an initial public offering.

Amazon.com shares $(AMZN)$ fell 2%. In last year's annual statement, Amazon said China-based sellers account for a significant portion of third-party seller services and advertising revenue. An e-commerce intelligence firm, Marketplace Pulse, said Chinese-based sellers account for nearly 50% of the top 10,000 sellers on Amazon in the U.S.

Alibaba $(BABA)$, the Chinese conglomerate, slipped 2% in premarket trade.

-Steve Goldstein

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February 05, 2025 09:08 ET (14:08 GMT)

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