U.S. Postal Service Halts Parcel Service From China as Trump’s Trade Curbs Begin
Published On Feb 4, 2025, 9:34 PM
The United States Postal Service has temporarily halted the acceptance of packages from mainland China and Hong Kong after a new executive order from President Trump requires detailed customs information and imposes tariffs on low-value parcels. This move follows a significant change in trade regulations that reinstates a 10% tariff and demands full tariff compliance for previously duty-free shipments. The impact of this change on the flow of goods may affect e-commerce companies reliant on Chinese suppliers.
Stock Forecasts
BABA
Negative
The halt on package acceptance from China may negatively affect e-commerce platforms that depend on cheap imports from the region. Businesses like Alibaba (BABA), which operate heavily in cross-border logistics, may face decreased sales and a drop in stock price as tariffs drive up costs and complicate shipping processes.
FDX
Positive
Logistics and carriers like FedEx (FDX) may gain from increased demand for their shipping services due to the interruptions in USPS service. If companies pivot from utilizing USPS for international shipments, there could be more business directing towards FedEx and UPS.
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