Australia Post has taken the extraordinary step of immediately suspending many forms of postage to the United States, as a Trump administration tariff on low-value parcels is due to come into effect within days.
Australian businesses selling to American customers will be blocked from shipping to the US via Australia Post from today.
The government-owned postal service joins other global carriers in taking this step, ahead of new levies beginning on Friday, August 29.
It will continue shipping letters and documents to the US, along with packages that are declared as gifts and are worth less than $US100 ($153).
“We are disappointed we have had to take this action,” Australia Post executive Gary Starr said in a statement.
“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 halt will largely impact businesses that ship goods to retail customers in the US, including those using Business Contract and MyPost Business.
“This decision has been made to ensure compliance with the new US Customs and Border Protection (CBP) requirements.
“Specifically, the requirement for duties and taxes to be prepaid on all shipments prior to their arrival in the US,” Australia Post said in an email to business customers.
The suspension also impacts shipping to Puerto Rico.
Are you being impacted by Australia Post’s decision? Do you know more about this story? Email our journalist confidentially on terzon.emilia@abc.net.au or em.terzon@proton.me
US shipping halt until ‘further notice’
Australia Post’s decision is effective immediately, from August 26, and is until “further notice”.
“Australia Post continues to work with US and Australian authorities and international postal partners to resume postal service to the US as a priority,” Mr Starr said.
E-commerce business have described confusion and chaos when trying to navigate the tariff changes. (ABC News: Michael Lloyd)
Australia Post’s suspension of most shipments to the US follows the Trump administration axing the “de minimis” exemption.
Until now, parcels of goods worth less than $US800 ($1,230) were not taxed when they arrived in the US — an exemption relied upon by many Australian retailers to send items to the US duty-free.
The tax exemption is due to end on August 29 for imports from all countries globally, with low-value parcels to be slugged with tariffs or flat fees.
The decision — formalised in an executive order on July 30 — has caught many postal operators globally off guard.
China’s de minimis exemption already ended earlier this year, impacting massive online retailers like Shein and Temu.
Guidelines out of Washington DC state parcels will now either be levied with the tariffs associated with their “country of origin”, or flat fees of more than $US80.
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