Global Postal Services Suspend U.S. Shipments as End of Tariff Loophole Sparks Shipping Chaos

TMTPOST -- Mail carriers worldwide are halting parcel deliveries to the United States ahead of a sweeping tariff change that is sowing confusion across global shipping networks.

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Starting Aug. 29, the Trump administration will eliminate the longstanding de minimis exemption, which has allowed millions of low-value packages to enter the U.S. duty-free and with minimal paperwork. The exemption — which applied to goods valued under $800 — has covered more than 4 million parcels handled daily by U.S. Customs and Border Protection (CBP). Its removal means all shipments by mail will be subject to tariffs or new flat fees.

The uncertainty has triggered a wave of suspensions by postal operators across Europe and Asia. German logistics giant DHL said Friday it would stop standard parcel shipments for businesses to the U.S., aligning with similar moves by its European peers. Earlier this week, postal groups in Scandinavia, Austria, and Belgium also announced service pauses due to the lack of clarity on how duties will be collected.

On Saturday, India Post joined the list, announcing it will temporarily suspend all parcel services to the U.S. starting Aug. 25.

The Czech Republic’s postal service will halt goods shipments to the U.S. indefinitely beginning Thursday, while Austria Post said it would no longer accept U.S.-bound parcels after Aug. 25. Belgium’s Bpost confirmed it will suspend shipments on Friday, according to local media.

“This tightening of the rules poses major challenges for all postal companies worldwide,” Austrian Post said in a statement, citing insufficient guidance on customs clearance.

The U.K.’s Royal Mail plans a one- to two-day suspension next week while it transitions to a new system to let shippers pay required duties. Australia Post has also halted certain transit deliveries for third-country packages routed through Australia to the U.S., though shipments sent directly from Australia remain unaffected.

The White House and CBP did not immediately respond to requests for comment.

Industry groups warn that the disruptions could quickly escalate. “It is a real concern that the dominoes are falling and there will be a ripple effect where more and more posts announce that they will be suspending packages to the U.S.,” said Kate Muth, executive director of the International Mailers Advisory Group.

Under the new rules, shipments will be charged duties either based on existing country-of-origin tariff rates or through a temporary flat fee ranging from $80 to $200 per item for the next six months. CBP issued its first guidance on Aug. 15 and has so far certified only two companies to collect duties on behalf of foreign mail carriers.

The fallout is already hitting e-commerce. Starting Aug. 25, Etsy said it will suspend its shipping label service for U.S.-bound packages from Australia, Canada, and the U.K. unless sellers use carriers such as FedEx or UPS, which already have systems in place to collect duties.

FedEx confirmed it will continue accepting and delivering U.S.-bound parcels, while UPS declined to comment. The U.S. Postal Service did not respond to requests for comment.

The changes mark one of the most significant overhauls of U.S. import policy in decades, disrupting a global ecosystem that had relied on the seamless flow of low-value goods into the country. With little clarity just days before the exemption ends, shippers, consumers, and postal operators face what many in the industry describe as a looming logistical “cliff.”