US Postal Service suspends incoming parcels from China, Hong Kong
What's the story
The United States Postal Service (USPS) has indefinitely stopped accepting incoming parcels from China and Hong Kong.
The move comes amid rising trade tensions between the US and China, further exacerbated by President Donald Trump's recent tariff announcements and his reluctance to rush into talks with Chinese President Xi Jinping.
The USPS has not given specific reasons for the suspension.
Economic repercussions
Suspension's impact on US consumers and retailers
The USPS's decision is likely to have a major impact on US consumer orders from leading retailers like Amazon.
A 2023 report found that 30% of small packages entering the US were from Chinese e-commerce giants Shein and Temu.
The USPS has refused to comment further on the matter, leaving many questions about the future of e-commerce trade between the two nations unanswered.
Trade retaliation
China retaliates with levies on US imports
In retaliation to Trump's tariffs on Chinese goods, Beijing had imposed its own levies on imports of US energy, vehicles, and equipment.
The move came soon after Trump announced a fresh 10% tariff on Chinese goods.
The White House press secretary, Karoline Leavitt, said that these measures are part of Trump's strategy to prevent China from distributing fentanyl in the US.
Escalating tensions
China's additional retaliatory measures and WTO complaint
Separately, China also announced plans to probe Google and a US fashion group that owns Tommy Hilfiger and Calvin Klein.
These moves are described by China's government as retaliation to Washington's "unilateral tariff hike."
Beijing plans to file a complaint with the World Trade Organization over these levies.
China also unveiled fresh export controls on rare metals like tungsten and molybdenum, further escalating the trade conflict.
Policy tool
Tariffs: A key foreign policy tool in Trump's 2nd term
Trump has highlighted tariffs as a major foreign policy weapon in his second term.
He had earlier suspended tariffs against Mexico and Canada after deals were struck to curb fentanyl trafficking and undocumented migration.
Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau have agreed to postpone tariffs for 30 days as wider talks continue, underscoring the importance of tariff negotiations in today's geopolitics.