No de minimus? No parcels: 25 countries suspend postal services to the US; UN postal agency cites tariffs fallout

The global flow of parcels to the United States has been thrown into chaos after 25 countries decided to halt shipments, as fears over US President’s looming tariffs grow.

The Universal Postal Union (UPU), a United Nations agency, confirmed on Tuesday that several nations had suspended deliveries due to uncertainty created by President Donald Trump’s new tariff rules.


"The postal operators of 25 member countries have already advised the UPU that they have suspended their outbound postal services to the US, citing uncertainties specifically related to transit services," the organisation said in a statement cited by AFP.

The decision follows earlier moves by postal operators in Asia and Europe. Australia’s government-owned postal service had also announced temporarily halting parcel deliveries to the US, citing changes made by Washington to long-standing customs rules.

Australia Post said the action was unavoidable after the Trump administration scrapped a regulation that had allowed low-value packages to enter the US duty-free. From 29 August, the US will impose duties on goods valued at $800 or below, suspending the “de minimis” exemption.

Under the new rules, parcels sent through the postal system face one of two tariffs: either an "ad valorem duty" equal to the effective tariff rate of the package's country of origin, or, for six months, a flat charge of $80 to $200 depending on the country’s tariff rate, Reuters reported. Packages to the US and Puerto Rico lodged on or after 26 August will not be accepted until further notice. Letters, documents, and gifts worth under $100 are exempt.

"We are disappointed we have had to take this action, however, due to the complex and rapidly evolving situation, a temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers," Australia Post said in a statement.

Japan Post also announced on Monday that it had suspended some items, though economy minister Ryosei Akazawa insisted the impact would be limited since other shipping options remained available. South Korea has stopped shipping parcels to the US, though customers can still send through its partnership with UPS.

FedEx, however, stressed it would continue to operate normally. "As an express carrier, our international express offerings are not impacted by the decisions of postal operators," FedEx Regional vice president Peter Langley told Reuters.

Select The Times of India as your preferred source on Google Search.

Stay informed with the latest business news, updates on bank holidays, public holidays, current gold rate and silver price.