International Postal Services Halt Shipments to the U.S. Amid Tariff Changes

International Postal Services Suspend Shipments to the U.S. As changes to U.S. tariff exemptions come into effect, international postal services are responding by halting shipments to the United States. The move follows the impending expiration of the “de minimis” rule, which previously allowed packages valued at $800 or lower to enter the country without incurring duties. Starting this Friday, the de minimis exemption will no longer be in place, a decision linked to the Trump administration's extensive trade policy adjustments. This change is particularly significant for online retailers, as it targets a loophole that had benefited e-commerce platforms. Earlier this year, in May, the U.S. government suspended the de minimis exemption specifically for packages from China and Hong Kong. Subsequently, duties on these shipments were adjusted, which disproportionately impacted budget retailers like Shein and Temu, whose business models rely on affordable, low-cost items. European and Asian postal operators, including Singapore's SingPost and India's Department of Posts, have announced plans to suspend certain shipments to the U.S., effective as early as Monday. DHL has stated that August 25 will be its last day for accepting shipments bound for the U.S., joining other operators like Austria's postal service, which will stop deliveries on August 26. The Austrian Post expressed concerns over future customs procedures, commenting, “There is currently insufficient information available on the customs clearance procedures that will be required in the future. This tightening of regulations poses major challenges for all postal companies worldwide when shipping goods to the USA.” On Monday, Swiss Post also indicated that it would “temporarily” halt shipments to the U.S. starting Tuesday, while still allowing for the shipment of documents and express consignments. This change in the de minimis rule is expected to have significant repercussions on multiple companies that have established ties with U.S. consumers, including discount platforms such as Amazon Haul and TikTok Shop, as well as marketplaces like Etsy and Shopify. In the last fiscal year, approximately 1.36 billion de minimis shipments entered the U.S., as reported by U.S. Customs and Border Protection. Businesses should also be aware of new charges associated with these duties, as outlined in the recent executive order. Companies could face costs that vary significantly, ranging from $80 per item for those with tariffs below 16% to a maximum of $200 for items taxed above 25%. Recent changes also saw Brazil hit with a stringent 50% tariff rate. Some business owners are already alerting their customers to the impacts of these new tariffs. Canadian jeweler Abbott Atelier announced on Instagram a pause on shipments to the U.S., marking August 25 as the cut-off date for orders. Likewise, Korean cosmetics retailer Olive Young has communicated that starting August 27, a 15% duty will apply to all its orders. United Kingdom-based Wool Warehouse anticipates that shipping costs to the U.S. may increase by approximately 50%, which led them to temporarily stop U.S. shipments. The Royal Mail has also planned to suspend U.S. shipments for roughly two days to implement new compliance systems. Marketplace Etsy has suggested that sellers may want to adjust shipping label purchases to include duties, allowing for a more straightforward checkout experience. However, numerous Etsy sellers are still contemplating the halt of sales to U.S. customers amidst the unfolding tariff landscape. For instance, UK-based jewelry maker Shed Maid stated it would close its shop to U.S. consumers as of August 29, highlighting the significant loss of business it might incur.