Postal services across the world are suspending parcel deliveries to the US, citing confusion about how to process millions of low-value packages that will lose their duty-free treatment next week.
As of Aug. 29, President Donald Trump is ending the so-called de minimis exemption that has applied to more than 4 million parcels flowing through the US each day, driven largely by e-commerce.
Under the new regime, which started with China and Hong Kong in May, goods mailed from other countries will be subject to tariffs and compliance with US Customs and Border Protection rules. Verifiable gifts valued at less than $100 will remain duty-free, according to the White House.
In response to the changes, a growing number of national mail services are pausing some services to the US as soon as this week, blaming a lack of clarity from US authorities on how the duties will be collected and how to submit required data.
In Asia, Korea Post said it will halt accepting air parcels and some express mail services to the US starting Tuesday, while keeping premium services, operated via private couriers, available subject to customs duties.
Similarly, Singapore’s SingPost will suspend standard services for commercial shipments to America from Monday, with Speedpost’s Express and Direct International Service available to retail and corporate customers, respectively.
Japan warned of potential delays or returned parcels because of the changes, with authorities vowing to share more information when available.
European postal services also made adjustments in light of the changes, with several suspending shipments. Norway and Finland’s mail carriers both said their stoppages begin Saturday.
‘Key Questions’
The service interruptions highlight the seismic impact from Trump’s decision to eliminate the de minimis exemption and raise concerns that cheap goods — especially those from China — will flood into other economies given the new barriers in the US.
Deutsche Post and DHL Parcel Germany are also temporarily suspending “the acceptance and transport of business customer parcels via the postal network to the US.” DHL Express service remains available.
“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 US Customs and Border Protection will be carried out,” DHL said in a statement Friday.