This is not good….
Postal operators around the world have announced they will suspend certain deliveries to the United States, ahead of an end to a long-standing tariff exemption for packages worth $800 or less.
President Donald Trump has framed the decision as part of a fight against illegal drugs. But mail companies say that many aspects of the new rules remain unclear.
Here’s what to know.
The facts
- Previously, most imported goods with a value of $800 or less were exempt from tariffs. That rule, known as the de minimis exemption, is set to end on Aug. 29 — though letters or personal gifts worth less than $100 won’t be affected, postal operators said.
- A number of national mail companies around the world from Europe to Asia and the Pacific have responded by temporarily suspending some mail services to the U.S.
- For consumers, this could mean delays in receiving packages — which may now also incur tariffs of $80 or more.
- The move stems from sweeping tariffs the president imposed on most U.S. trading partners earlier this year.
What are the changes?
The de minimis — which in Latin means something too small or insignificant to be considered — tax exception was passed by Congress in the 1930s and amended over the years. Under the Obama administration, the exemption
was raised from $200 to $800 — where it remained until this year.
The
exemption allowed companies to save tens of billions of dollars in fees on cheap imports, most of which came from China — though Etsy sellers and family-run businesses also benefited from the rule.
The Trump administration ended the exception for China and Hong Kong in May. In an
executive order signed last month, Trump extended the decision to all countries starting Aug. 29, meaning that most low-value parcels will also be charged tariffs.
Which countries are affected?
National mail services in more than a dozen European countries have said they are pausing at least some of their deliveries until they have figured out how to deal with the new rules.
In Germany, Deutsche Post and DHL Parcel Germany said they were temporarily suspending business customer parcels to the U.S. beginning Saturday — though shipments via DHL Express are not affected.
Belgium’s
Postal Service suspended shipments containing merchandise starting Saturday, while Spain’s Correos said that it will not accept packages worth $800 or less beginning Monday. France’s La Poste
saidit may be forced to temporarily suspend some shipments unless a solution is reached before the implementation date. Britain’s Royal Mail said it plans to withdraw its services for a day or two, before rolling out a system to deal with the requirements.
Suspensions have also been announced across Asia and the Pacific. India’s Department of Posts
said that it would temporarily stop mail service to the U.S. beginning Monday.
Thailand temporarily suspended all international postal parcel services to the U.S., while
South Korea,
Singapore and
New Zealand suspended most shipments. Australia Post has temporarily suspended what is known as transit shipping — where goods from other countries are shipped to the U.S. via Australia.
U.S. Customs and Border Protection did not immediately reply to a request for comment.
What will it mean for shipping costs?
The extra charges on a package will depend on the methodology used to calculate it, according to the executive order. The duty rate will either match the level of tariff the U.S. has imposed on the country of origin, or a specific duty based on the following:
- For countries with a tariff rate of 15 percent or less, such as Britain, each package will incur an additional charge of $80.
- Parcels originating from countries with U.S. tariffs of between 16 and 25 percent will incur an additional $160.
- Countries with a tariff rate of more than 25 percent will face an extra $200.
The new rules could also put the onus on senders to pay import duties before the shipment leaves for the U.S., according to
Belgium’s bpost. It said in a statement the changes mean “import duties for all shipments with goods must be prepaid, regardless of value.”
Letters, documents and gifts under $100 are exempt — though DHL said in a
statement that any parcel declared as a gift “will be subject to even stricter controls than before to prevent the misuse of private gift shipments for sending commercial goods.”
End of duty-free threshold: The U.S. is eliminating its “de minimis” exemption, which let packages worth under $800 enter the country without duties.
www.consumeraffairs.com
- End of duty-free threshold: The U.S. is eliminating its “de minimis” exemption, which let packages worth under $800 enter the country without duties.
- Shipping suspensions: Postal operators in Germany, Denmark, Sweden, Italy, France, Austria, and the U.K. are pausing or restricting shipments to the U.S. amid uncertainty.
- Tariff confusion: With little clarity from U.S. authorities, carriers warn of delays, higher costs, and widespread disruption to cross-border e-commerce.
First tariffs, now this
The suspension comes just weeks after Washington and Brussels agreed to impose a 15% tariff on most EU goods. Packages previously exempt under the $800 threshold will now be subject to the same duties.
The U.S. already ended duty-free entry for Chinese goods in May, part of the Trump administration’s push to curb imports of inexpensive foreign products. That restriction is now being extended worldwide.
Postal operators say they were given too little time to prepare for the change. Italy’s Poste Italiane, France’s La Poste, and Austria’s Austrian Post each cited unclear U.S. guidance and a lack of updated customs systems. PostEurop, representing 51 European postal operators, warned that if no solution is found by August 29, all its members may suspend U.S.-bound shipments.
“If you have something to send to America, you should do it today,” PostNL spokesperson Wout Witteveen told the Associated Press.
