The United States’ termination of a key tariff exemption has triggered widespread suspensions of parcel shipments from major trading partners, causing significant disruptions to global e-commerce and postal networks. Japan, Australia, and Taiwan are the latest to halt services, joining a growing list of countries responding to the new policy.
Global Postal Networks Halt US-Bound Parcels
This week, multiple national postal services announced temporary suspensions. Consequently, these actions directly respond to the elimination of the “de minimis” exemption. Previously, this rule allowed goods valued under $800 to enter the US duty-free. However, the new policy aims to bolster domestic manufacturing by slowing low-cost imports.
Asia-Pacific Postal Services Announce Suspensions
Firstly, Japan Post announced a temporary suspension of small package deliveries to the US for items exceeding $100 in value. Similarly, Australia Post declared a “temporary partial suspension” of services to the US and Puerto Rico, effective August 26. The agency cited alignment with actions taken by other international postal operators.
Moreover, Chunghwa Post of Taiwan has also suspended small parcel deliveries to the US. The service stated the global postal system lacks a mechanism for senders to prepay new customs duties. This logistical hurdle has forced their hand. These suspensions impact both individual senders and small businesses relying on affordable international shipping.
E-Commerce and Businesses Face Immediate Challenges
The policy change creates immense uncertainty for online retailers. For instance, Australian e-commerce businesses are reporting chaos. Laz Smith, co-founder of maternity wear brand Apéro, highlighted the volatility to the ABC, stating it puts “all of Australian fashion in a really precarious position.”
Furthermore, the change severely affects major online marketplaces. Platforms like Amazon Haul, TikTok Shop, Etsy, and Shopify, which connect US consumers to global discount sellers, are expected to feel significant impact. Additionally, private carriers like DHL have also begun refusing US-bound shipments ahead of the deadline.
Understanding the New Tariff Costs
The scale of this change is enormous. The U.S. Customs and Border Protection processed over 1.36 billion de minimis shipments last fiscal year. Under the new rules, businesses now face steep per-item charges. According to the latest executive order, costs could range from $80 for items from countries with a sub-16% tariff rate to over $200 for items from countries with rates exceeding 25%.
In conclusion, the end of the US tariff exemption has created a ripple effect across global supply chains. As postal services scramble to adapt, the long-term impact on international e-commerce and small businesses remains uncertain.
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