Trade Policy Impact: International Postal Services Suspend Shipments to US as Tariff Duty Exemption Ends
Effective this Friday, international postal services are halting shipments to the United States due to the expiration of a tariff exemption for small packages. This decision underscores the far-reaching impacts of President Trump’s trade policies on American consumers and businesses.
From August 25th, the de minimis exemption, which allowed duty-free entry of goods valued at $800 or less, will no longer be in effect.
This move represents another challenge to the exemption that previously benefited e-commerce giants. In May, the administration had already suspended the rule for packages originating from China and Hong Kong, with resulting high duties (reduced from 120% to 54%) significantly impacting low-cost sellers like Shein and Temu.
In response, European and Asian postal services have taken proactive steps to halt shipments as early as Monday. Singapore’s SingPost and India’s Department of Posts will also temporarily suspend some US-bound shipments.
Global logistics provider DHL announced that August 25th would be the last day it accepts packages destined for the United States, joining European counterparts in pausing shipments, including Austria’s Post, which will cease accepting shipments on August 26th. The Austrian Post cited uncertainty regarding future customs clearance procedures as a primary concern.
The change is expected to affect various discount sellers and online marketplaces, including Amazon Haul, TikTok Shop, Etsy, and Shopify. Last fiscal year, more than 1.36 billion de minimis shipments entered the country, with US Customs and Border Protection processing over 4 million such shipments daily.
Under the latest executive order, businesses may face charges ranging from $80 to $200 per item, depending on the tariff rate of the exporting country. The US recently imposed new tariff rates on several trading partners, with Brazil facing the highest tariff rate at 50%.
A Vancouver-based jewelry business, Abbott Atelier Jewelry, informed customers via Instagram that it would temporarily pause sales due to the tariff changes and August 25th would serve as the cutoff date for orders.
Some businesses are choosing to pass on these additional costs to consumers. Korean cosmetics brand Olive Young announced that a 15% duty will be applied to all orders, beginning August 27th. British yarn and crafting company Wool Warehouse estimated that extra charges on its US exports may average 50%, leading the company to suspend shipping on August 21st.
“This decision is based on our current understanding of the rules,” the company wrote on its website, emphasizing the significance of the US market for its business.
Britain’s Royal Mail will also halt services for US shipments beginning Tuesday, lasting approximately two days as they prepare for new shipping requirements.
Etsy recommends sellers pay duties and other fees when purchasing shipping labels, allowing tariff-inclusive prices to be present and calculated on Etsy for a seamless shopping experience. However, some Etsy sellers plan to discontinue sales to US customers altogether.
A UK-based jewelry maker, Shed Maid, announced that its shop would close to US customers from August 29th, representing a customer base that accounts for half of its orders according to a TikTok post. “It is going to have a huge impact on my business … I’m not sure what I’m going to do,” they said, expressing hope for resuming sales to American customers in the future.