The United States Postal Service briefly halted incoming packages from China and Hong Kong on Tuesday before resuming normal service on Wednesday, following accusations of 'unreasonable suppression' from Beijing. The incident marks the latest escalation in the growing trade war between the US and China.
The suspension coincided with President Donald Trump's imposition of fresh 10% tariffs on Chinese goods and the elimination of the de minimis duty-free exemption for low-value packages. In 2023, a US government report stated that 30% of small packages entering the US came from Chinese e-commerce giants Shein and Temu.
China responded swiftly on Tuesday with retaliatory tariffs on US energy imports, vehicles, and equipment, including 15% levies on coal and liquefied natural gas and 10% duties on crude oil and agricultural machinery. Beijing also announced export controls on rare metals such as tungsten and tellurium.
China's foreign ministry expressed 'strong dissatisfaction and resolute opposition' to the US measures, urging Washington to stop politicising trade issues. A spokesperson defended China's counter-tariffs as necessary, noting that 'there are no winners in a trade war.'
Later on Wednesday, the World Trade Organization confirmed that China had initiated a dispute over the US levies, which Beijing described as 'malicious'. The US Department of Homeland Security also announced that the 10% tariffs would apply to products from Hong Kong.
Stock markets wavered as investors braced for volatility, while President Trump told reporters he was in 'no rush' to speak with Chinese President Xi Jinping, despite earlier expectations of talks. Prof Yeling Tan from Oxford University commented that Trump's tariffs might 'ultimately be self-defeating', as China had diversified its trade partners after previous tariffs.
