WTO Warns of Potential 80% Drop in US-China Trade Amid Rising Tensions

The United States Postal Service (USPS) has suspended all incoming parcel deliveries from China and Hong Kong, a move that Beijing has criticized as "unreasonable suppression." This suspension coincides with escalating trade tensions, as President Donald Trump indicated he is “in no rush” to engage in talks with Chinese President Xi Jinping, despite expectations of discussions over recently announced tariffs. The USPS has not provided specific reasons for the suspension, which is likely linked to Trump's recently implemented tariffs and the elimination of duty-free exemptions for low-value packages. In 2023, a US report highlighted that 30% of incoming small parcels originated from Chinese retailers like Shein and Temu. China's foreign ministry expressed "strong dissatisfaction," urging the United States to avoid politicizing trade and imposing undue restrictions. In retaliation, Beijing has enacted its own tariffs, including 15% on US coal and liquefied natural gas, and is investigating US companies like Google. Analysts suggest that these measures could backfire, as China diversifies its trade partners.