International postal services are suspending shipments to the United States after an exemption on tariff duties for small packages is set to expire. It’s the latest example of how President Donald Trump’s sweeping trade policy is impacting US consumers and businesses.
Beginning Friday, the “de minimis” exemption, which allowed shipments of goods worth $800 or less to enter the United States duty free, will be eliminated.
It’s another blow to the exemption that provided a loophole for e-commerce giants: In May, the Trump administration suspended the rule on packages coming from China and Hong Kong. Those high duties, which were reduced from 120% to 54%, especially hurt low-cost sellers like Shein and Temu.
European and Asian postal services have taken matters into their own hands by announcing plans to halt shipments as early as Monday. Singapore’s SingPost and India’s Department of Posts said they will also temporarily suspend some shipments to the United States.
International postal service DHL said August 25 will be the last day it accepts shipments to the United States, joining European peers in halting shipments, including the Austrian Post, which will stop accepting shipments to the United States on August 26.
“There is currently insufficient information available on the customs clearance procedures that will be required in the future. This tightening of regulations poses major challenges for all postal companies worldwide when shipping goods to the USA,” the Austrian Post said.
The change is expected to affect discount sellers, like Amazon Haul and TikTok Shop, as well as online marketplaces Etsy and Shopify, all of which have connected US consumers to businesses worldwide.
Reshaping business models
US Customs and Border Protection estimated that more than 1.36 billion de minimis shipments entered the country last fiscal year. The agency processes more than 4 million de minimis shipments each day.
According to the latest executive order, businesses may face an $80 per item charge for a country with a tariff rate less than 16%, or costs as high as $160 per item for a country with a tariff rate of between 16% and 25%, and $200 per item for a country with a tariff rate above 25%. On August 7, the US imposed new tariff rates on many trading partners, with Brazil facing the highest tariff rate, at 50%.
Abbott Atelier Jewelry, a Vancouver, Canada-based business, warned customers in an Instagram post that it would “pause shopping for a little while as we look for a solution” and August 25 would be the “cut off date to bring orders across the border.”
Some businesses are passing the additional tariff costs on to shoppers.
Korean cosmetics brand Olive Young said that once the de minimis exemption ends, 15% duties will be applied to all orders, “regardless of the purchase amount,” beginning August 27. The duty and taxes will be shown at checkout, so “there will be no additional charges upon delivery.”
Wool Warehouse, a United Kingdom-based yarn and crafting company, estimated extra charges on its exports to the United States may average 50% more. But the company doubts customers would eat the additional costs and decided to suspend shipping on August 21.
“Clearly this is not something we want to do. The US is a significant part of our business. This decision is based on our current understanding of the rules,” the company wrote on its website.
Britain’s Royal Mail will also halt services for US shipments beginning Tuesday. It would last roughly two days, until a system is prepared for the new shipping requirements.
Etsy recommended sellers pay duties and other fees when purchasing shipping labels. That option allows tariff-inclusive prices to be present and calculated on Etsy for a “seamless shopping experience.”
But some Etsy sellers plan to halt sales to US customers anyway.
Shed Maid, a UK-based jewelry maker, said its shop would close to US customers from August 29 — a customer base that accounts for 50% of its orders, according to a post on TikTok.
“It is going to have a huge impact on my business … I’m not sure what I’m going to do,” they said, adding, “I hope to be able to send to (American customers) again soon.”
CNN’s Elisabeth Buchwald and Ramishah Maruf contributed to this report.
For more CNN news and newsletters create an account at CNN.com
