The move was announced Tuesday, coming after the U.S. imposed an additional 10% tariff on Chinese goods and ended a customs exception that allowed small value parcels to enter the U.S. without paying tax. Canada and Mexico managed to negotiate a month-long reprieve from 25% tariffs threatened by U.S. President Donald Trump.

The move will likely have an impact on e-commerce platforms like Shein and Temu along with operators of drop shipping businesses.

Chinese packages under $800 were exempt from tariffs due to the "de minimis" exemption, now ended under new U.S. rules that came into effect Tuesday.

USPS suspends packages from China as new tax rules take effect, targeting loopholes used by Shein, Temu, and other e-commerce giants.

The US Postal Service decision, which takes effect immediately, is a potential blow to Chinese online retailers such as Shein and Temu.

The U.S. Postal Service’s decision may block or delay parcels from retailers including Shein and Temu from entering the United States.

The US Postal Service says it has suspended the acceptance of incoming international parcels from China and Hong Kong until further notice, threatening the business models of e-commerce giants Shein and Temu.