China slams US 'suppression' as trade war deepens

Beijing accused the United States Wednesday of "suppression" after its postal service said it was suspending parcels from China and Hong Kong, a move that could hit e-commerce giants Temu and Shein.

Tensions between the US and China have soared in recent days as the world's two largest economies slapped a volley of tariffs on each others' imports, hitting hundreds of billions of dollars in trade.

On Tuesday, the US Postal Service (USPS) also scrapped a duty-free exemption for low-value packages.

The "de minimis" exemption allows goods valued at $800 or below to enter the United States without paying duties or certain taxes, but it has faced scrutiny due to a surge in shipments in recent years.

In a statement last month, the US Customs and Border Protection agency said exemption shipments were worth over $1.36 billion in 2024, creating challenges for its enforcement of trade laws, health and safety requirements, intellectual property rights, and consumer protection rules.

Shein and Temu in crosshairs

US officials have pointed to the growth of Chinese-founded online retailers Shein and Temu as a key factor behind this increase -- and Tuesday's halt could delay parcels from both companies from entering the country.

Beijing responded with fury to the move, accusing the US of "politicizing trade and economic issues and using them as tools".

Vowing to "take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies", foreign ministry spokesman Lin Jian accused Washington of "unreasonable suppression".

Washington has been looking to tighten the "de minimis" rules, saying the growth in shipments makes it harder to screen goods for security risks.

But the US postal service gave no reason for its pause on Tuesday. AFP has reached out to Shein and Temu for comment.

Other retailers such as Amazon might also be impacted.

A postal services worker at the General Post Office in Macau told AFP that parcels could still be sent to the United States from the semi-autonomous Chinese city.

Tariff standoff

Tuesday saw Beijing say it would impose levies on imports of US energy, vehicles and equipment in a return salvo minutes after Trump's threatened tariffs on Chinese goods came into effect.

A day earlier, Trump suspended duties on Mexico and Canada for a month after both countries vowed to step up measures to counter flows of the drug fentanyl and the crossing of undocumented migrants into the United States.

Beijing's moves hit roughly $20 billion worth of US goods per year -- roughly 12 percent of total American imports into China, according to calculations by Capital Economics.

But their impact is a far cry from US tariffs announced over the weekend, which will affect some $450 billion worth of goods.

Trump had signaled earlier that the talks with Xi could take place early this week, but addressing reporters at the White House Tuesday afternoon, he said he was in "no rush".