US Tariff Policies Cause European Parcel Companies to Halt Shipments to U.S., Citing Uncertain Logistics and Paperwork Challenges

Various transatlantic parcel services, including DHL, Royal Mail, La Poste of France, Correos of Spain, and their respective national post offices, have temporarily halted some deliveries to the United States due to newly implemented tariff regulations effective from August 29th.

The financial implications of tariffs have been a recurring topic in trade news this summer; however, in this instance, it’s not the financial burden but rather the paperwork that poses challenges.

An executive order by President Trump will terminate the “de minimis” rule, which previously allowed individual packages valued under $800 to enter the U.S. tariff-free. This rule, often referred to as a loophole, had already been abolished for China and Hong Kong, but is now being suspended for all countries.

Exempt from these new regulations are letters and gifts worth less than $100 (provided they are not sent by companies), which can still be shipped. However, business packages will encounter significant obstacles. As previously reported by NPR, the majority of packages imported into the U.S. currently qualify for “de minimis” exemption.

The elimination of this exemption increases costs for imported goods. Nevertheless, postal services and parcel companies are not halting shipments due to financial reasons; instead, they’re expressing concerns over ambiguous policies and the need to establish new logistical systems.

In a statement, DHL Group articulated unresolved questions, particularly concerning future customs duty collection methods, required additional data, and data transmission to U.S. Customs and Border Protection. Consequently, DHL Group is temporarily suspending business shipments to the U.S. via Deutsche Post and DHL Parcel Germany, while DHL Express service will remain operational.

DHL did not provide an estimated duration for this pause but aims “to restart postal goods shipping to the U.S. as swiftly as possible.”

The French postal service La Poste has also paused shipments of goods to the U.S., citing a limited timeframe for preparation and the need for further policy clarification. Spain’s Correos postal service is similarly halting goods deliveries temporarily, attributing this action to the significant impact that the new policies and their expedited implementation are having on international postal logistics.

In contrast, The Royal Mail anticipates a brief disruption of 1-2 days as it establishes new services for calculating and billing companies for tariffs.

The White House published a fact sheet last month, labeling “de minimis” treatment a “catastrophic loophole” and a “major scam,” contending that it not only reduces tariff revenue but also facilitates the importation of illicit substances, as “de minimis” goods receive expedited processing, thereby reducing oversight.

There is bipartisan support for restricting or eliminating “de minimis” shipments. The Biden administration has expressed concerns about drugs and unsafe products entering the country. Some U.S. companies also argue that it provides an unfair advantage to foreign manufacturers over domestic companies by offering a convenient method to bypass tariffs.

However, proponents of duty-free shipments argue that eliminating de minimis would disproportionately affect lower-income Americans and would create an “administrative nightmare.”