For customers in the United States, ordering goods from businesses outside of the country is about to get more expensive. On 29 August, a global import tax exemption on low-value parcels entering the US will come to an end, meaning many packages from abroad will be subject to potentially hundreds of dollars of additional charges.
But even before it comes into effect, the new tariff is proving a headache for postal services. The Royal Mail in the United Kingdom, Germany’s Deutsche Post and others have paused shipments to the US as they deal with confusion over which goods are affected and who is responsible for paying the added cost.
US President Donald Trump signed an executive order for the suspension of the de minimis exemption – named after the Latin phrase for something insignificant or too small to be considered – in July, with the aim of “closing the catastrophic loophole used to, among other things, evade tariffs and funnel deadly synthetic opioids as well as other unsafe or below-market products that harm American workers and businesses into the United States,” according to a White House press release.
Data from the US Customs and Border Patrol Agency shows that 1.36bn packages were sent into the US under this exemption in 2024, at a total value of US$64.6bn.
Chinese parcels sent to the US have already been subject to higher tariffs since May, when Trump ended that country’s duty-free exemption as part of efforts to stop American shoppers ordering cheap Chinese-made products through companies such as Temu and Shein.
Once the tax loophole closes for the rest of the world, goods valued at US$800 or less will face the same tariff rate as other goods from their country of origin. Only gifts worth less than US$100 will remain duty-free.
Postal services in several countries have announced a pause on commercial shipments to the US as they scramble to put systems in place to handle the new rules. Along with the UK and Germany, countries such as India, Belgium, France, Sweden, Italy, Singapore, New Zealand and around 20 others have so far halted some or all parcel postage to the US until they can clarify the details of the tariff.
In addition, Spain’s Correos postal service has also said it will not accept packages worth US$800 or less starting this week and Australia Post has temporarily suspended transit shipping, which is when goods destined for the US from other countries pass through Australia.
Online marketplace Etsy has suspended US shipping label services for certain postal services in Australia, Canada and the UK, with its website recommending that users find alternative carriers who let them pre-pay tariff fees.
“Key questions remain 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 U.S. Customs and Border Protection will be carried out,” said global shipping company DHL in a press release.