USPS Resumes Accepting China Shipments Amid New Tariffs

The U.S. Postal Service has resumed accepting packages from China after a brief pause. While the suspension was short-lived, it came in the midst of broader trade tensions, including new tariffs that could have ripple effects on companies like United Parcel Service, Inc. UPS and FedEx Corp. FDX.

What To Know: The Postal Service halted accepting parcels from China amid President Donald Trump’s implementation of an additional 10% tariff on Chinese imports. The Trump administration also closed a loophole that let companies avoid tariffs on packages worth less than $800 when shipped directly to U.S. consumers, according to The Wall Street Journal.

Use of the loophole has surged in recent years as orders from companies such as Shein and Temu have grown in popularity. In the 2024 fiscal year alone, approximately 1.36 billion shipments entered the U.S. through this exemption.

The Postal Service stated on Wednesday that it is collaborating with Customs and Border Protection to develop “an efficient collection mechanism for the new China tariffs” to minimize disruptions to package deliveries.

Now that USPS has resumed accepting packages from China, investors might anticipate less business shifting to UPS and FedEx. However, the ongoing trade tensions and tariff changes may still impact investor sentiment regarding logistics-tied stocks.

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Price Action: At the time of writing FedEx shares are trading 0.71% lower at $249.21 and UPS stock is trading 0.05% lower at $111.71.

Image: Courtesy of USPS