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Australia Post suspends US shipments after Washington scrapped a rule that let low-value parcels enter duty-free. The decision, announced Tuesday, leaves many customers and businesses scrambling to find alternatives.
Why Australia Post Suspended US Shipments
The U.S. government recently eliminated the “de minimis” exemption, which allowed packages under $800 to bypass duties. Starting August 29, all parcels face new tariffs. Goods will incur either an “ad valorem duty” matching the origin country’s effective tariff rate or, for six months, a specific tariff between $80 and $200.
Australia Post explained that the change makes processing complex and unmanageable under current systems. “We are disappointed to take this step,” the service said. “However, a temporary suspension is necessary until we develop a workable solution.”
Impact on Customers and Businesses
Australia Post suspends US shipments for parcels and merchandise lodged on or after August 26. The suspension also covers deliveries to Puerto Rico. However, gifts valued under $100, letters, and standard documents remain unaffected.
The move echoes earlier actions by European carriers. Swiss Post and DHL, which operates Germany’s Deutsche Post, also halted shipments to the United States. The sudden shift has disrupted global logistics chains and could significantly impact e-commerce retailers reliant on international sales.
What Happens Next?
Australia Post said it will work closely with U.S. and Australian authorities to restore services. It also seeks cooperation from international postal partners. While no timeline was given, the postal operator stressed it aims to resume shipping “as soon as possible.”
Businesses now face higher shipping costs and delays, potentially forcing them to adjust pricing models. Small exporters who depend on affordable delivery may struggle most, as duty-free entry once made U.S. sales competitive.
Broader Trade Tensions
The Trump administration justified the rule change as part of broader trade policies designed to reduce imbalances. Critics, however, argue the tariffs disproportionately harm small businesses and international postal networks.
For now, Australian retailers must either pause American sales or switch to private couriers that still operate under the new rules, though often at higher costs.
