Suspension of Shipments
Japan, Australia, and Taiwan have recently announced that they will suspend certain parcel shipments to the United States. This decision follows new regulations implemented by President Donald Trump’s administration that will eliminate tariff exemptions.
The “de minimis” exemption, which previously allowed goods valued at $800 or less to enter the US duty-free, will come to an end starting Friday. This policy shift is part of an effort to reduce the influx of low-cost imports aimed at strengthening domestic manufacturing. However, it has created significant disruptions in global postal networks and e-commerce supply chains.
International Response
Several countries, including India, Thailand, South Korea, and New Zealand, have already halted services until further notice due to logistical challenges and uncertainties surrounding US tariff policies. The impact is being felt across the Asia-Pacific region, with more postal services temporarily ceasing operations to the US, affecting low-value parcels from individuals and small businesses.
Australia’s Actions
Japan Post has announced a temporary suspension of deliveries of small packages valued over $100 to the US, effective Wednesday. Meanwhile, Australia Post revealed it will “temporarily partially suspend postal services to the United States and Puerto Rico, effective August 26, 2025, until further notice.” In its statement, Australia Post acknowledged that this decision aligns with actions taken by various international postal operators.
The Australian public broadcaster ABC reported that this uncertainty has led to chaos for e-commerce retailers in Australia. Laz Smith, co-founder of maternity wear brand Apéro, commented on the situation, stating, “The volatility in decision making, and the volatility of the market, and, quite frankly, the lack of ability of even Australia Post to be able to address these issues in a timely manner, puts us, and all of Australian fashion, in a really precarious position.”
Taiwan’s Postal Services
Taiwan’s postal service has also joined in by suspending deliveries of small parcels headed for the US, effective from Tuesday. Chunghwa Post attributed this decision to the inadequacies in the global postal system, which has yet to provide a service for senders to prepay customs duties. Additionally, Chunghwa Post’s contracted carriers have announced the suspension of merchandise mail deliveries.
Wider Implications
The termination of the de minimis exemption is poised to impact discount retailers such as Amazon Haul and TikTok Shop, as well as online marketplaces like Etsy and Shopify, all of which facilitate connections between US consumers and international businesses.
In response to the impending deadline for tariff exemptions, international courier DHL has announced it will stop accepting shipments to the US starting August 25, joining various European carriers in halting shipments.
U.S. Customs and Border Protection estimates that over 1.36 billion de minimis shipments entered the country in the last fiscal year, with more than 4 million processed daily. The latest executive orders indicate that businesses may incur additional charges: $80 per item for imports from countries with a tariff rate below 16%, $160 for those with a tariff rate between 16% and 25%, and $200 for rates beyond 25%.
