Executive Summary
- President Donald Trump’s administration is terminating the “de minimis” tariff exemption for goods valued at $800 or less, effective this Friday.
- This policy change has prompted a growing number of countries and international carriers, including Japan, Australia, Taiwan, Mexico, and DHL, to suspend or partially suspend parcel shipments to the United States.
- The policy aims to curb low-cost imports and support domestic manufacturing but has created significant logistical disruptions for global postal networks and e-commerce supply chains.
The Story So Far
- The widespread suspension of parcel shipments to the U.S. is a direct consequence of the Trump administration’s imminent termination of the “de minimis” tariff exemption, which previously allowed goods valued at $800 or less to enter the U.S. duty-free. This policy change, effective this Friday, aims to curb low-cost imports and support domestic manufacturing, but it has created significant logistical disruptions for global postal networks and e-commerce supply chains.
Why This Matters
- The termination of the “de minimis” tariff exemption by President Trump’s administration is causing widespread logistical disruptions, leading numerous countries and international carriers to suspend parcel shipments to the U.S. This policy shift will significantly impact e-commerce platforms and discount sellers by limiting consumer access to low-cost imports and is expected to reshape global cross-border trade dynamics.
Who Thinks What?
- President Donald Trump’s administration terminated the “de minimis” tariff exemption to curb low-cost imports and support domestic manufacturing.
- A growing number of countries and international carriers, including Japan, Australia, Mexico, Taiwan, and DHL, are suspending or partially suspending parcel shipments to the U.S. due to logistical disruptions and a lack of clarity regarding new U.S. tariff policies.
- E-commerce retailers, such as Laz Smith from Apéro, express concern that the “volatility in decision making” and market uncertainty created by the policy change places their businesses in a “really precarious position.”
A growing number of countries and international carriers, including Japan, Australia, Taiwan, Mexico, and DHL, are suspending or partially suspending some parcel shipments to the United States. This widespread action follows the imminent termination of the “de minimis” tariff exemption by President Donald Trump’s administration, which allowed goods valued at $800 or less to enter the U.S. duty-free. The policy change, effective this Friday, aims to curb low-cost imports and support domestic manufacturing but has led to significant logistical disruptions in global postal networks and e-commerce supply chains.
Policy Shift and Immediate Impact
The “de minimis” exemption previously permitted shipments of goods valued at $800 or less to enter the United States without incurring duties. Its elimination, spearheaded by the Trump administration, is intended to slow the influx of inexpensive imports and bolster domestic manufacturing capabilities. However, this change has triggered considerable uncertainty and logistical challenges for postal services and e-commerce platforms worldwide.
Several nations had already announced service suspensions. India, Thailand, South Korea, and New Zealand were among the first to halt shipments to the U.S. indefinitely, citing operational difficulties and a lack of clarity regarding the new U.S. tariff policies. More postal providers across the Asia Pacific region are now also temporarily ceasing services for low-value parcels.
Country-Specific Suspensions
Japan Post announced on Monday that it would temporarily suspend deliveries of small packages with values exceeding $100 to the U.S., effective Wednesday. Similarly, Mexico confirmed on Wednesday that it would temporarily suspend all shipments to the United States.
Taiwan’s postal service, Chunghwa Post, also suspended deliveries of small parcels bound for the U.S. starting Tuesday. The service stated that the global postal system currently lacks a mechanism for senders to prepay customs duties, and its contracted carriers have consequently announced suspensions for merchandise mail deliveries.
Australia’s Response and Industry Concerns
Australia Post indicated on Tuesday that it would “temporarily partially suspend postal services to the United States and Puerto Rico, effective 26 August 2025 until further notice.” The postal operator noted that this decision aligns with actions taken by numerous international postal services.
The Australian public broadcaster ABC reported that the uncertainty surrounding postage has created significant challenges for e-commerce retailers in the country. Laz Smith, co-founder of maternity wear brand Apéro, expressed concern to ABC, stating that the “volatility in decision making” and the market, coupled with Australia Post’s inability to address these issues promptly, places Australian fashion in a “really precarious position.”
Broader Business and Carrier Implications
The ending of the “de minimis” exemption is anticipated to significantly impact discount sellers and online marketplaces that connect U.S. consumers with global businesses. Platforms such as Amazon Haul, TikTok Shop, Etsy, and Shopify are expected to feel the effects of the policy change.
In response to the looming tariff exemption deadline, international postal service DHL has also announced it will stop accepting shipments to the U.S. starting August 25, joining a number of its European counterparts in halting services.
The widespread suspension of parcel services underscores the immediate global ramifications of the new U.S. tariff policy. As the “de minimis” exemption concludes, international postal networks and e-commerce platforms are navigating significant operational hurdles, which could lead to a reshaping of cross-border trade dynamics and consumer access to goods.
