The recent abrupt policy reversal by the United States Postal Service (USPS) regarding shipments from China has left cross-border e-commerce sellers grappling with uncertainty. Within just 12 hours of announcing a suspension of parcel acceptance from mainland China and Hong Kong, USPS retracted the decision—a move that highlights the volatile nature of international trade regulations.
The Lightning Reversal: Unpacking USPS's Policy Shift
On February 5, USPS published a notice stating it would work closely with U.S. Customs and Border Protection (CBP) to establish an effective mechanism for collecting new 10% tariffs on Chinese goods while minimizing delivery disruptions. While the postal service didn't specify reasons for the initial suspension announcement, industry analysts suggest it may relate to potential changes in America's "de minimis" exemption rules. Bloomberg analysts note that since private carriers like SF Express, UPS, and DHL handle most Chinese imports, USPS's action carried more symbolic weight. The swift reversal indicates USPS may be seeking tariff-compliant solutions that don't disrupt normal trade flows.
De Minimis Rules: A Lifeline for Cross-Border Commerce?
The de minimis provision allows duty-free entry for imported goods below a certain value threshold while streamlining customs clearance. Chinese e-commerce platforms like Temu and SHEIN have leveraged this rule to deliver low-cost goods quickly to American consumers. Any tightening or elimination of this exemption would increase import costs and potentially delay shipments—factors that could significantly impact the cross-border business model. Market jitters about this uncertainty were reflected in recent stock price fluctuations of PDD Holdings, Temu's parent company.
Chinese Platforms Adapt: The Rise of Overseas Warehousing
Anticipating stricter customs requirements, major Chinese e-commerce players are accelerating overseas warehouse deployments to reduce reliance on de minimis shipments. Products shipped from local warehouses reach consumers faster while decreasing dependence on direct China-origin deliveries. On Temu's "Lightning Deals" section, products marked with green "Local" tags—often sourced from Chinese sellers but stored in U.S. warehouses—now dominate listings.
Challenges for Small Sellers: Navigating Logistics Uncertainty
For small and medium sellers, potential de minimis changes may prove manageable. World Freight Summit data shows average e-commerce parcel values typically range between $15-$18—even with a 20% tariff, prices could remain below retail store levels. However, the greater concern involves potential customs processing delays as CBP handles increased parcel volumes—a scenario consumers may find more frustrating than modest price hikes. Sellers must monitor carrier updates closely to navigate sudden disruptions like USPS's short-lived suspension.
Building Supply Chain Resilience: Key Strategies for Sellers
To mitigate policy volatility, cross-border sellers should consider these approaches:
- Diversify logistics networks: Avoid over-reliance on single carriers by cultivating multiple shipping partnerships.
- Optimize overseas warehousing: Strategically position inventory in target markets to improve delivery efficiency.
- Track regulatory changes: Stay informed about evolving U.S. customs policies to enable timely adjustments.
- Enhance compliance: Ensure merchandise meets all CBP requirements to prevent clearance delays.
By implementing these measures, e-commerce businesses can better withstand regulatory shifts while maintaining operational stability.