The US Postal Service has started blocking packages from China and Hong Kong.

The US Postal Service has temporarily stopped accepting packages from China and Hong Kong after President Trump revoked a trade exemption. Previously, this exemption allowed duty-free shipping of small packages to the US for retail companies like Temu and Shein.

The Trump administration imposed an additional 10% tariff on goods from China and canceled the de minimis rule that allowed avoiding customs duties on packages up to $800.

These steps were a response to Trump's claims of insufficient efforts by Beijing in combating the supply of fentanyl to the US.

Chinese suppliers were taking advantage of the duty-free shipping for exporting chemical components of fentanyl, masking them in electronic and other cheap products.

The new restrictions from the USPS will not apply to letters and packages measuring up to 38 cm in length and 1.9 cm in thickness. However, the service did not explain whether these restrictions are related to the cancellation of the de minimis rule for China.

In our opinion, USPS will need some Time to develop a mechanism for collecting the new taxes before allowing Chinese packages to enter the US again, said senior Morningstar analyst Chelsea Tam.

This will pose a serious challenge, as 4 million packages come in every day under the de minimis rule. Checking all these shipments is very difficult, so the process will take time, added Chelsea Tam.