Recent Suspension of Postal Services: What You Need to Know
As of last Friday, several carriers temporarily suspended their services to avoid shipping packages after August 29. This decision primarily stems from the impending increase in tariffs that will significantly impact the cost of mailing parcels, especially those worth under US$800. Let’s delve into the specifics of this situation, including why these changes occurred and how they affect various countries.
Why Are Postal Services Being Suspended?
The recent changes in postal service dynamics are largely due to alterations in U.S. tariff regulations. The Trump administration recently removed a long-standing exemption for packages valued under US$800 from tariffs. This adjustment means that packages will now incur fees based on the tariff rates applicable to their country of origin. Consequently, postal services face the dilemma of either absorbing these increased costs or passing them on to customers, making international postage significantly more expensive.
In response to these developments, numerous countries have chosen to halt postal services to the U.S. temporarily, allowing time for carriers to reassess their pricing structures and operational procedures under the new rules.
Does It Apply to All Mail?
The service suspensions vary from country to country. In many cases, postal services continue to allow the mailing of letters but have ceased sending parcels valued under US$800 to the U.S. While letters and personal gifts worth less than US$100 typically remain tariff-exempt, numerous services have opted to suspend the shipping of goods entirely.
Packages already in transit to the U.S. that arrive before the cutoff on Friday will not incur new tariff fees. However, those that arrive afterward might be returned to the sender to avoid excess charges. Belgium’s postal service, for instance, has indicated that it will refuse delivery on packages arriving after this date.
Which Countries Have Stopped Delivering Mail to the U.S.?
By Tuesday, postal services in nearly 30 countries had suspended various services to the U.S. Within Europe, 22 nations—including the UK, France, Germany, and Italy—had implemented some form of service suspension. The umbrella organization PostEurop noted that its members may be forced to adopt further restrictions.
In the Asia-Pacific region, countries like Australia, New Zealand, Japan, India, South Korea, Taiwan, and Singapore have all suspended some or all postal deliveries to the U.S. Platforms such as Etsy have also temporarily halted shipping label services for carriers like Australia Post, Canada Post, and the UK’s Royal Mail, advising users to seek alternative options that allow for pre-payment of tariff fees.
When Will Mail to the U.S. Return?
Given the current situation, postal services have communicated to their customers that U.S. deliveries will remain on hold indefinitely. The timeline for resuming normal operations hinges on the U.S. government issuing comprehensive details about the new import rules and the ability of postal services to adapt accordingly.
Belgium’s bpost has acknowledged that these interruptions will last until it can adequately process the new requirements. Meanwhile, Australia Post cautioned that postal fees would inevitably rise to accommodate the newly imposed tariff and handling fees. The future pricing structure is yet to be determined, but shipments will incur tariffs based on the country of origin.
Until late February, U.S. customs may accept a temporary flat tariff fee, depending on the originating country’s rate: $80 for items from countries with tariffs under 16%, $160 for rates between 16% and 25%, and $200 for those with tariffs over 25%.
Why Did Trump Remove De Minimis Treatment?
This change is just one of many stemming from the Trump administration’s evolving trade policies, which have increasingly relied on tariffs as a strategic tool in diplomacy. The de minimis exemption had previously enabled seamless and cost-effective trading, allowing businesses to send smaller packages without significant tariff implications.
In 2024 alone, the U.S. processed approximately 1.36 billion packages under this exemption, translating to goods valued at $64.6 billion. Online retailers like Amazon and Etsy had greatly benefited from this framework, which allowed them to sell goods at competitive prices.
The recent removal of this exemption now affects all countries facing U.S. tariffs. Earlier this year, the administration had already suspended the de minimis exemption for packages arriving from China and Hong Kong, a decision that contributed significantly to the reduction of shipments processed under this rule.
Industry associations in the U.S. have long lobbied against the de minimis exception, claiming it created unfair competition, particularly from sellers based in China. The situation is further complicated by claims from the White House that the exemption had been misused for illicit trafficking, including the export of dangerous substances like fentanyl.
The executive order signed in July not only suspended the de minimis exemptions for all countries but also reflects a broader shift in the U.S. approach to international trade and customs regulations.