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HomeNewsUSPS Suspends Shipments from China: How It Affects American Agriculture

USPS Suspends Shipments from China: How It Affects American Agriculture

On February 4, the United States Postal Service (USPS) issued a statement on its official website, announcing the suspension of package acceptance from mainland China and Hong Kong, China, until further notice. However, the circulation of letters and flat mail remained unaffected. This decision drew widespread attention.

The USPS is one of the largest civilian postal institutions in the United States. This move is believed to be closely related to the trade policies of the Trump administration. According to an executive order signed by Trump on February 1, all goods exported from China to the United States would no longer enjoy the “low-value tax exemption” policy. Previously, packages valued at less than $800 were exempt from duties and did not require detailed customs clearance. The new executive order not only ended this exemption policy but also imposed an additional 10% tariff on all Chinese products.

This policy change has had a significant impact on the cross-border e-commerce industry. Chinese cross-border e-commerce platforms, such as Temu and Shein, rely on the low-cost advantage of direct mail from China to deliver millions of goods to the U.S. market every week. The suspension of USPS package services is expected to affect their business operations. Third-party sellers on platforms such as Amazon will also be impacted.

However, on the morning of February 5, the USPS announced that it had resumed accepting all incoming international mail and packages from mainland China and Hong Kong. Despite this policy reversal within less than 24 hours, the USPS did not provide an explanation for its initial suspension announcement or the sudden policy change.

Impact on the Development of U.S. Agriculture

If, at some point in the future, the USPS completely suspends the acceptance of packages from China and Hong Kong, this measure could have the following effects on American farmers:

Delayed Supply of Agricultural Equipment and Parts

American farmers rely on imports of agricultural equipment, parts, and accessories from China and Hong Kong. A suspension of package services could result in farmers not receiving essential repair or upgrade components in a timely manner, affecting the operational efficiency of farms.

Impact on Cross-Border Transportation of Agricultural Products

Farmers may need to export certain agricultural products or seeds to China or Hong Kong. A suspension of package services would disrupt these export operations, leading to delayed sales or lost market opportunities.

Increased Logistics Costs

Halting package acceptance could force farmers to seek alternative transportation methods, which may increase shipping costs and delay the arrival of goods. This would, in turn, affect cash flow and business arrangements for farmers.

Effect on Farmers’ Purchase of Agricultural Supplies

China and Hong Kong serve as major suppliers of many agricultural commodities, including fertilizers, pesticides, and seeds. A suspension of package services would impact farmers’ ability to replenish essential agricultural supplies on time, potentially leading to shortages or higher prices.

Impact on E-Commerce Sales

Some American farmers purchase agriculture-related products (such as equipment, accessories, and seeds) through e-commerce platforms. A suspension of package services would disrupt these online transactions, cause delivery delays, and even lead to inventory shortages.

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