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World News
27 August 2025

Global Parcel Chaos After US Ends Tariff Exemption

Postal services worldwide halt or restrict shipments to the United States as new customs rules disrupt e-commerce and leave businesses scrambling for solutions.

Global online shopping has been thrown into disarray as a sweeping change to U.S. customs policy has forced postal services and e-commerce giants around the world to abruptly halt or adjust shipments to the United States. The turbulence began after the Trump administration eliminated the long-standing “de minimis” tariff exemption, which previously allowed goods valued at $800 or less to enter the country duty-free. The new rules, which took effect on August 26, 2025, have upended international parcel flows, leaving small businesses, individual sellers, and millions of consumers scrambling for answers and alternatives.

For years, the de minimis exemption served as a vital artery for low-value online orders, supporting the explosive growth of cross-border e-commerce. But as of late August, the U.S. government closed that channel, now requiring duties on nearly all imported parcels—no matter how small. According to CNN, the new duties can range from $80 to $200 per shipment, depending on the country of origin and the applicable tariff rate. The goal, as stated by the Trump administration, is to bolster domestic manufacturing by making it less attractive to import cheap goods from abroad.

The fallout was swift and far-reaching. Australia Post was among the first to react, announcing a partial suspension of postal services to the U.S. and Puerto Rico, effective August 26. In a statement quoted by CNN, the postal service explained, “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.” The move immediately affected Australian retailers and e-commerce brands, who reported significant logistical headaches as they scrambled to find new ways to deliver orders to American customers.

Japan Post followed suit, suspending shipments of small parcels valued over $100 to the U.S. from August 27. Japan’s Economy Minister Ryosei Akazawa sought to reassure businesses, noting that alternative shipping options remained available, but acknowledged that the changes would hit low-value e-commerce shipments particularly hard.

Elsewhere in Asia, the disruption was just as severe. Chunghwa Post, Taiwan’s postal service, stopped sending small parcels to the U.S. as of August 26, citing the lack of a global system to prepay customs duties and the suspension of merchandise mail by contracted carriers. As Chunghwa Post told CNN, “the global postal system has not yet provided a service allowing senders to prepay customs duty, and Chunghwa Post’s contracted carriers have also announced suspension of merchandise mail deliveries.” India’s postal service also temporarily suspended some outbound shipments to the U.S., pointing to logistical challenges and uncertainty over the new tariff rules.

Thailand Post, Korea Post, and New Zealand Post all announced similar suspensions or restrictions on certain parcels to the U.S., especially those of low value. In Korea, customers were advised to use private carriers like UPS, as the national postal service could no longer guarantee delivery under the new customs regime. Hongkong Post went even further, halting all surface mail to the U.S. immediately and air mail from April 27, 2025, describing the move as a response to “bullying” tariff hikes by the U.S. administration.

European postal operators were not spared. On August 25, DHL, the German logistics giant, announced it would stop accepting shipments to the U.S. from individuals and small businesses, with the suspension taking effect August 29. In a press release, DHL explained, “The reason for these anticipated temporary restrictions is new processes required by U.S. authorities for postal shipping, which differ from the previously applicable regulations.” The company cited unresolved issues regarding how customs duties would be collected, what additional data would be required, and how that information would be transmitted to U.S. Customs and Border Protection. Packages marked as gifts and valued under $100 would be the only exception, DHL clarified.

Royal Mail, Britain’s postal service, also suspended deliveries to the U.S. (with the exception of cards and letters), but assured customers it was working with U.S. authorities and international partners to adapt its services. As the company told BBC, “We have been working hard with US authorities and international partners to adapt our services to meet the new US de minimis requirements so UK consumers and businesses can continue to use our services when they come into effect.”

Across the board, the impact has been most acute for small businesses and individual sellers, many of whom rely on affordable postal options to reach American buyers. The inability to prepay customs duties, the lack of clarity on new documentation requirements, and the sudden need to navigate complex tariff codes have left many feeling stranded. According to CNN, affected parcels now face duties that can dramatically increase the cost of shipping, threatening the viability of cross-border e-commerce for smaller players.

Major e-commerce platforms and brands have been forced to adapt quickly. Olive Young, the popular South Korean K-beauty retailer, notified customers that a 15 percent duty would be added to the total product amount at checkout to account for the new U.S. customs regulations. Meanwhile, Chinese e-commerce heavyweight Temu began listing “import charges” as high as 145 percent during the final payment steps, as reported by CNBC earlier this year. Fast-fashion giant Shein adjusted its prices in April but had yet to respond to the latest regulatory changes as of late August.

The uncertainty is palpable. DHL, in its press release, pointed to “key questions [that] remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out.” Without clear answers, many postal operators have opted for temporary suspensions rather than risk non-compliance or additional penalties.

While private carriers like UPS and FedEx remain alternatives for some customers, their services are often more expensive, and not all small businesses can absorb the added costs. The shift is already changing the global e-commerce landscape, with some experts warning that higher shipping costs and longer delivery times could dampen consumer enthusiasm for international shopping.

For now, the world’s postal networks and e-commerce supply chains remain in flux. Postal services from Australia to the UK are scrambling to develop new systems, while businesses and consumers alike wait anxiously for clarity. The Trump administration’s effort to bolster domestic manufacturing has certainly made waves—but whether the trade-off is worth it remains a hotly debated question among retailers, policymakers, and shoppers on both sides of the Pacific.

As the dust settles, one thing is certain: the era of cheap, duty-free online shopping from abroad has come to an abrupt and uncertain end for millions of Americans and their favorite overseas sellers.