Global Postal Services Halt US Shipments Following Tariff Changes
Postal services across Europe and Asia have announced plans to suspend shipments of merchandise to the United States due to the termination of the “de minimis” tariff exemption. This change, implemented by the Trump Administration, goes into effect on August 29, 2023. The exemption previously allowed international carriers to send goods valued under $800 to the US without incurring customs duties.
The White House’s decision to end the exemption was officially linked to concerns over the influx of fentanyl and other illegal drugs entering the country. In a public statement on its website, DHL, Europe’s largest shipping provider, indicated that “Deutsche Post and DHL Parcel Germany will no longer be able to accept and transport parcels and postal items containing goods from business customers destined for the US.” This restriction is effective immediately and underscores the challenges arising from the new regulations.
DHL described the halt as temporary, emphasizing that it was necessary to adapt to “new processes required by US authorities for postal shipping.” The company also noted that critical questions remain unresolved, particularly regarding customs duties and the necessary data for shipments. DHL expressed concerns about how and by whom these duties will be collected and how data transmission to US Customs and Border Protection will be managed.
Widespread Impact on International Postal Services
Countries including Denmark, Sweden, Italy, Austria, France, and Belgium have echoed DHL’s stance, announcing similar pauses in shipments to the US. The UK’s Royal Mail also confirmed it has temporarily stopped shipments. The BBC reported that this disruption reflects a broader impact on global postal services.
In Asia, postal services in Singapore and Thailand have announced they will delay shipments as they seek clarity on the new rules. “The halt underscores the sweeping disruption caused by President Trump’s decision to eliminate the de minimis threshold,” Thailand Post stated. The de minimis exemption, capped at $800 per person per day, had facilitated the smooth entry of millions of small packages into the US.
Meanwhile, Australia Post has also paused transit on some packages heading to the US. The Royal Mail communicated that it is working closely with US authorities and international partners to adapt its services in line with the new requirements.
The US had already ended the de minimis exemption for shipments from China in May 2023. The White House previously stated that many Chinese sellers were utilizing this exemption to transport illicit substances, including synthetic opioids, concealed within low-value packages. The number of de minimis shipments entering the US has surged from 134 million in 2015 to 1.34 billion in 2024, according to the Financial Times. This surge has significantly benefited Chinese fast fashion companies like Temu and Shein, which ship products directly to consumers.
As global postal services grapple with the ramifications of this policy change, the future of international shipping to the US remains uncertain. The repercussions of this decision will likely impact consumers and businesses worldwide, as they navigate the complexities of new regulations.
