USPS Reverses Decision to Halt Parcel Service From China

Published On Feb 4, 2025, 9:34 PM

The United States Postal Service (USPS) has reversed its earlier decision to temporarily halt package deliveries from mainland China and Hong Kong. This comes in light of President Trump's new tariffs on Chinese imports, which include an order for greater inspection of packages. The situation has created confusion in the logistics sector, as USPS assures that it will continue accepting all international mail and is working with Customs and Border Protection to manage the new tariffs efficiently. The reversal highlights the impact of changing U.S. trade policies and their implications on global delivery systems.

Stock Forecasts

AMZN

Positive

The reversal of the USPS's decision indicates that e-commerce continues to play a vital role in the shipping industry. Companies that rely on international shipping and e-commerce networks, particularly those engaged in trade with China, may see a positive impact as operations continue smoothly. This could bode well for logistics and e-commerce-related stocks especially seen in the context of the ongoing dependence on imports from China.

FDX

Negative

While the changes to import tariffs will initially create operational challenges, the immediate continuation of services by USPS could mitigate losses. Companies heavily affected by the tariffs may face a slow recovery as they adjust their pricing and supply chain strategies, potentially leading to negative performances in the short term. Investors should watch closely how these changes affect major import and logistics firms.

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It says the suspension will be in place "until further notice" and did not offer a reason for the decision.

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When President Trump pushed ahead with a 10% tariff on all Chinese merchandise, he also closed the century-old de minimis exemption, which allows packages worth under $800 to be shipped into the country duty-free.