International postal services are facing disruptions in shipments to the United States following the expiration of the 'de minimis' exemption on tariff duties for small packages. This exemption, which allowed duty-free entry of goods worth $800 or less into the US, will be eliminated starting Friday.
The removal of this exemption is part of President Donald Trump's broader trade policy, which has already impacted US consumers and businesses. The exemption had previously provided a loophole for e-commerce giants, but recent changes have led to challenges for both sellers and buyers.
European and Asian postal services have announced plans to suspend shipments to the US in response to the new regulations. Companies like DHL and Swiss Post have set deadlines for accepting shipments, while others, such as SingPost and India's Department of Posts, have also decided to temporarily halt certain shipments.
The tightening of customs clearance procedures poses significant challenges for postal companies worldwide. The US Customs and Border Protection estimates that over 1.36 billion de minimis shipments entered the country last fiscal year, with millions processed daily.
Businesses are bracing for additional costs due to the new tariff rates imposed by the US on various trading partners. Some companies, like Abbott Atelier Jewelry and Olive Young, have already informed customers about potential changes in pricing and shipping policies.
Online marketplaces like Etsy and Shopify, as well as discount sellers and international brands, are expected to be affected by the new regulations. Sellers are exploring options to mitigate the impact on customers, with some choosing to pass on tariff costs or temporarily suspend shipments to the US.
As businesses navigate the evolving trade landscape, uncertainties remain about the long-term implications of these changes. The decision to suspend shipments and adjust pricing reflects the complex interplay between global trade policies and the operations of companies serving US consumers.
