Trump's China tariff could have huge impact on Amazon over 70 percent supply chain issue
Topics: China, Donald Trump, Politics, Shopping
Ellie Kemp
Featured Image Credit: Michael M. Santiago/Getty Images
Topics: China, Donald Trump, Politics, Shopping
The US Postal Service is temporarily refusing to accept parcels from China and Hong Kong in a move that could see both retailers and consumers stumped.
USPS confirmed as of Tuesday (February 4) it will suspend only international package acceptance of inbound parcels 'until further notice'. However, the 'flow of letters and flats' - so, large envelopes - from China and Hong Kong 'will not be impacted.'
Still, if you're expecting a package from Amazon or perhaps fashion giants Shein, Temu or AliExpress, you might be waiting a while.
USPS did not say how long the suspension is anticipated to last, nor the reason behind the move.
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The move comes as president Donald Trump imposed a new measure which closed the 'de minimis' tax loophole.
This allowed small packages worth $800 or less to be sent to the US without incurring any fees - and has helped low-price retail giants including Shein and Temu boom.
The 'de minimis' exemption has long been under scrutiny, with US officials claiming it runs a security risk.
And during his trade announcement last weekend, Trump confirmed an additional 10 percent tariff on all goods imported to the US from China and Hong Kong, extending it to cover both fashion and toys.
These changes were already being made under Joe Biden's administration before Trump took office.
Reacting to the news on social media, one person predicted: "We finna see the downfall of shein omg —" as a second joked: "Temu better be able to fit everything in a letter."
A third added: "Do you know the amount of things that we get imported from these two places… they’re gonna have to shut Temu down."
A fourth warned: "People are laughing about the #USPS stopping all packages from China and Hong Kong. Just wait. I don’t think Americans realize how much of our products are manufactured by China."
And they're right; it's not just the fast fashion stores that will be impacted.
The world's largest retailer, Amazon, will also feel the pressure of USPS' temporary suspension.
That's because more than 70 percent of products from Amazon wholesalers and retailers are produced in China, according to a survey conducted by Jungle Scout and published by the ECDB via Statista.
The USPS move and Trump's tariff could potentially cause major disruption.
However, the Jeff Bezos-owned retail giant has been pushing to deliver more of its own parcels with Amazon Logistics, its own transportation program.
Founded in 2005, Amazon Logistics delivered 27.3 percent of all packages shipped in the US in 2023, as per Capital One Shopping Research.
However, the retailer 'works closely' with USPS and relies on it for 'around nine percent' of its package deliveries as of 2024, according to market research firm ShipMatrix.
Chinese officials slammed Trump's new tariff as 'unreasonable suppression' on Wednesday.
In response, China has vowed to implement tariffs on a number of US imports, including a 15 percent levy on coal and liquefied natural gas and a 10 percent tariff on crude oil and large-engine cars.
A spokesperson for USPS told UNILAD: "Effective February 5, 2025, the Postal Service will continue accepting all international inbound mail and packages from China and Hong Kong Posts.
"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.
"The Postal Service stays in touch with its international customers via Service Alerts found here."
UNILAD also contacted Amazon for further comment.