HONG KONG/SEOUL/SHANGHAI: The U.S. Postal Service (USPS) has reversed its decision to suspend parcel shipments from China and Hong Kong, adding to the confusion surrounding President Donald Trump's new tariffs and trade restrictions.

The sudden policy shifts have left retailers and shipping companies scrambling to navigate the 10 percent tariff on all Chinese imports and the elimination of the de minimis exemption, which previously allowed duty-free entry for packages valued under US$800.

The USPS reversal follows its brief suspension of Chinese parcel shipments, which sparked uncertainty among companies relying on low-cost imports. While USPS did not clarify whether the suspension was directly linked to Trump's new trade policies, the agency stated it is working with U.S. Customs and Border Protection to minimize disruptions.

Retailers and logistics providers remain uncertain about enforcement measures, as many had little time to prepare for the sweeping changes.

"We're all running around like headless chickens, trying to second-guess what's going to happen. And in two weeks' time, we may be back to normal," said Martin Palmer, co-founder of Hurricane Commerce, a cross-border e-commerce data provider.

Despite the escalating trade war, no call has been scheduled between Trump and Chinese President Xi Jinping, a source told Reuters. Trump, who introduced the tariffs to curb fentanyl shipments and protect U.S. manufacturers, stated he was in no hurry to speak with Xi.

In retaliation, China imposed tariffs on U.S. coal, liquefied natural gas, crude oil, and farm equipment and launched an antitrust probe into Google.

The elimination of the de minimis exemption has disrupted supply chains for retailers like Shein and Temu, which heavily relied on duty-free shipments.

Maureen Cori, co-founder of Supply Chain Compliance, noted that businesses now face major logistical hurdles.

"There has really been absolutely zero time for anyone to prepare for this," she said.

The policy change means that instead of clearing bulk shipments, each parcel must now be individually processed, increasing costs for postal services, customs agents, and logistics firms.

Logistics provider Easyship has advised clients to consider setting up U.S. distribution centers to avoid customs delays.

FedEx and SF Express confirmed they will continue U.S. parcel shipments, while FedEx suspended its money-back guarantee for inbound U.S. packages due to regulatory uncertainties.

According to a U.S. congressional report, the de minimis rule allowed 1.36 billion shipments into the U.S. in 2024, with nearly half coming from China.

Despite the chaos, shipping giants like DHL are working to limit disruptions, while Shein and Temu have yet to respond to requests for comment.