Auspost Temporarily Suspends US Deliveries Amid New Tariffs

Australia Post has announced a temporary halt in US deliveries, affecting the sending of most parcel items to the United States and Puerto Rico, effective immediately, in response to sweeping changes in US tariff and customs policy.

What Prompted This Move?

• The US government has eliminated the “de minimis” exemption, which previously allowed goods valued under US $800 (approx. AUD $1,230) to enter duty-free. Starting 29 August 2025, all inbound parcels to the US will be subject to tariffs.

• Furthermore, pre-payment of tariffs will now be mandatory before items reach US customs—adding logistical and administrative complexity for postal operators.

Scope of the Suspension

• The pause targets Business Contract, MyPost Business, and most retail parcels, while letters, documents, and personal gifts valued under US $100 remain unaffected.

• Notably, this suspension includes “transit shipments”—parcels routed through Australia from third countries to the US — though direct Australia – US deliveries remain largely intact for now.

Broader Industry Response

• Australia Post’s decision mirrors similar actions by postal services in over 190 countries, including New Zealand, and across Europe and Asia such as Germany, France, South Korea, and Singapore.

• The urgency stems from unclear guidance on how duties will be collected—whether based on country-of-origin tariffs or flat fees—and how pre-payment mechanisms will operate.

Next Steps and Industry Reaction

• Australia Post is collaborating with US Customs and Border Protection (CBP) and certified customs partners to devise a solution for resuming services—particularly for business customers.

• The Australian government has condemned the US policy shift, warning it will increase costs for American consumers and small businesses. It reaffirmed its commitment to tariff-free trade under the free trade agreement.

Why This Matters

• For Australian businesses, particularly e-commerce sellers and exporters, this suspension could disrupt overseas sales channels to the US, requiring urgent adaptation to the new customs regime.

• For Australian consumers, receiving US deliveries from retailers—especially low-cost goods—may become more complex, slower, or expensive.

• Globally, this policy shift signals a growing trend of tightening cross-border trade practices, impacting supply chains and postal operations worldwide.