As Trump wages trade war, US Postal Service refuses parcels from China

The US Postal Service said on Tuesday that it has temporarily halted accepting international parcels from China and Hong Kong until further notice, Axios reported, citing the USPS website.

The development will take effect from February 4.

This move came amid the start of a trade war between the United States and China after US President Donald Trump announced a tariff of 10 per cent on trade with China.

Moreover, Trump announced a tariff of 25 per cent on Canada and Mexico, which was paused for a month.

In retaliation, China announced tariffs on American products and initiated antitrust investigations into major US tech companies.

China retaliates

China’s response includes a 15 per cent tariff on US coal and liquefied natural gas, and a 10 per cent tariff on crude oil, agricultural machinery, and large-engine cars, effective from next Monday.

Additionally, China has launched an antitrust probe into Google’s Android operating system and is scrutinising chipmakers Nvidia and Intel.

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US revokes de minimis exemption

Recently, the US government has revoked the de minimis exemption for imports from China. Previously, this exemption allowed goods valued under $800 to enter the US duty-free.

The US Postal Service has not yet clarified whether the halt is part of Trump’s revocation of de minimis.

Trump has always been vocal about the trade imbalance with China and the unfair trade practices used to boost trade. By imposing tariffs, Trump aimed to protect domestic manufacturing and the struggling US economy.