In a significant development, global postal services, including Australia and Japan have joined several other countries in suspending some parcel shipments to the United States(US).This decision comes after the US government ended an exemption that allowed packages valued at less than $800 to enter the country duty-free.
Australia Post announced that it would be implementing a “temporary partial suspension” of parcel shipments to the US, effective immediately.
In a statement, the postal service expressed its disappointment but noted that the decision was necessary “due to the complex and rapidly evolving situation”.
Packages sent to the US and Puerto Rico lodged on or after Tuesday will not be accepted until further notice, the postal service said.
Similarly, Japan Post announced that it would suspend some parcel shipments to the US, citing unclear procedures for transport and postal operators.
The suspension is necessary, Japan Post said, due to the difficulty in implementing the new rules.
The decision by Australia and Japan follows similar announcements from several European postal services, including Germany, Denmark, Sweden, Italy, France, Austria, and the United Kingdom.
The UK’s Royal Mail said it would halt shipments to the US beginning on Tuesday to allow time for those packages to arrive before new duties kick in.
The new tariff rules, which were introduced as part of a tax and spending bill signed by US President Donald Trump, aim to repeal the “de minimis” exemption worldwide starting on July 1, 2027.
Goods shipped through the postal system will now face one of two tariffs: either an “ad valorem duty” equal to the effective tariff rate of the package’s country of origin or, for six months, a specific tariff of $80 to $200, depending on the country of origin’s tariff rate.
The changing nature of Trump’s tariffs, which vary from country to country and are different in some cases depending on which products are being imported, has added to the confusion for postal services.
Trump had already ended the “de minimis” exemption with China and Hong Kong on May 2, closing a loophole which was widely used by fast-fashion companies Shein, Temu, and others to ship duty-free.
According to Shippit, an Australian shipping software company, there has been a significant decline in shipments from Australia to the US even before the new changes came into effect.
“There’s been a 36 percent drop in volume since April in terms of outbound shipments from Australia to the US,” Shippit’s chief executive, Rob Hango-Zada, said.
DHL, the largest shipping provider in Europe, said in a statement that key questions remained unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the US Customs and Border Protection will be carried out.
As the situation continues to unfold, it remains to be seen how these developments will impact global trade and the shipping industry.
However, one thing is certain: the changes to the US tariff rules will have far-reaching consequences for businesses and individuals who rely on international shipping.
The recent suspension of shipments to the US by global postal services, including Australia Post, DHL, and others, has significant implications for small businesses and exporters.
Small enterprises in Australia that rely on US clientele, especially those dealing in sustainable products and uniquely Australian goods, may face significant financial and logistical challenges. The new tariff rules and shipment suspensions could disrupt their supply chains, leading to delayed or lost sales.
The US Customs and Border Protection’s decision to lower the threshold for formal customs processing from $2,500 to $800 has triggered a wave of additional paperwork and inspections at ports of entry.
This has led to widespread delays and increased costs for shippers, prompting some carriers to suspend shipments or reevaluate their logistics strategies.
The suspension of shipments could lead to increased costs for businesses and consumers, potentially disrupting the flow of goods and affecting economic growth.
The new tariff rules may also prompt businesses to consider alternative shipping strategies, such as domestic warehousing or more expensive logistics providers.
Some carriers, like FedEx, continue to operate unaffected, while others, like DHL, have suspended B2C shipments to private individuals in the US with declared values exceeding $800.
The industry is working on finding solutions to resume services, but the uncertainty surrounding the new tariff rules has created challenges for logistics providers.