Australian exporters, businesses and individuals can no longer send packages to the United States, after Australia Post joined the conga line of global mail services stopping shipments as they assess major US tariff changes.

The policy changes, which take effect 29 August, will close the longstanding ‘de minimis’ tax rule that allowed duty-free importation of goods to the US if they are valued at less than $1,233 ($US800) on the principle that levying and collecting taxes isn’t worth the bother.

An Executive Order by US President Donald Trump, signed on 30 July, extends a series of de minimis suspensions that Trump said were made to address “a national emergency regarding the unusual and extraordinary threat to the safety and security of Americans.”

Concerns about fentanyl importation putatively drove the change, he said, because “the risks of evasion, deception, and illicit-drug importation are particularly high for low-value articles that have been eligible for duty-free de minimis treatment.”

The cuts, which were applied to Chinese exporters earlier this year, have caused problems for heavy online discounters like Temu and Shein, whose low-value products were flowing into the US, Australia, and elsewhere free of the duties paid by larger-volume importers.

Loyal customers mourned the end of their access to dirt-cheap Chinese imports, with prices rising worldwide and anything sent to the US now going through US Customs clearance, with US import duties assessed at the new tariff rate – which, in Australia’s case, is 10 per cent.

A minimum $80 per item will be payable for Australian packages – less than the $160 or $200 fees assessable on countries with higher tariff rates, but still a significant change for Australian exporters and the logistics companies they rely on to operate.

Packages paused as the world figures out how to ship to the US

Recognising that the new tariff rules will dramatically change the way packages are shipped to the US, Australia Post announced that it is “monitoring the situation closely” and has temporarily suspended international parcel services to the US as it evaluates the changes.

Letters, documents and gifts worth under $154 ($US100) are exempt from the suspension, although Australia Post warns that “if the sender’s information includes a business name or looks like a purchase it will not qualify as a gift” and will be returned to sender.

Australia Post’s move echoes similar stoppages around the world, with as similar delivery bans are imposed by the UK’s Royal Mail, France’s La Poste, Germany’s Deutsche Post, Spain’s Correos, Italy’s Poste Italiene, Austria’s Österreichische Post, DHL, and others.

While it manages the transition to the new tariff regime, Australia Post has worked to clarify the changes for Australian businesses, with DHL warning Australian exporters of the complexities of the de minimis changes, while FedEx and UPS are watching closely.

Uncertainty for Australian exporters

Overseas customers are a key growth market for Australian small business, with recent Sendle surveys finding a third eyeing overseas growth – with 65 per cent expecting a significant part of their business growth to come from overseas clients this year.

Yet the threat of receiving a tariff-due notice, rather than an expected package, deters many overseas customers – with one recent survey finding that 41 per cent of UK and US shoppers wouldn’t buy from an international e-commerce site if they couldn’t see tariff costs upfront.

To address this, UPS recently launched a tool that lets e-commerce companies calculate tariff costs at checkout – something that increasingly API-driven delivery companies are all working to match as shifting US tariff regimes keep the world’s logistics industry on notice.

DFAT has advised Australian exporters to review their policies, with technology companies exporting to the US likely to be particularly affected because many components are made in higher-tariff overseas countries and imported for local assembly.

“Higher tariffs imposed on some countries may impact tariff rates for Australian businesses whose goods are manufactured elsewhere,” DFAT said.

Australia Post is working to implement “a workable solution for our customers,” Australia Post executive general manager of parcels, post and e-commerce services, Gary Starr said in a statement about the ban.

“We are disappointed we have had to take this action,” Starr said, “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.”