Global Shipping Companies Pause Deliveries to the US Following Tariff Changes
Mail carriers from Europe and other parts of the world have taken the decision to temporarily suspend sending merchandise to the United States. The move comes as a reaction to the recent cancellation of the 'de minimus' tariff exemption by the US administration.
The so-called 'de minimus' rule previously allowed international shipping companies to deliver goods worth less than $800 to the United States without having to pay any customs duties. The abolition of this exemption was announced by the US government a few weeks ago, with the justification that it was a measure to combat the entry of illegal substances, including fentanyl, into the country.
Impact on Major Shipping Providers
One of the largest shipping companies in Europe revealed in an online statement that they will no longer be accepting or transporting parcels containing goods from commercial customers aimed for the US market. They have stated that this change will be effective immediately.
They have clarified, however, that the restrictions on packages will be temporary, and are necessary due to the "new processes required by US authorities for postal shipping, which differ from the previously applicable regulations." The company has expressed concerns over unresolved issues, especially regarding how and by whom customs duties will be collected in the future, what additional information will be required, and how the data transmission to the US Customs and Border Protection will be carried out.
Worldwide Reaction
Several postal services in countries such as Denmark, Sweden, Italy, Austria, France, and Belgium have also announced plans to suspend shipments to the US. Outside of Europe, Asian countries including Singapore and Thailand have decided to withhold shipments until there is more clarity on the new rules.
They have highlighted that the decision to scrap the 'de minimus' threshold has led to significant disruption. The exemption, which previously allowed low-value parcels to enter the US without customs duties, facilitated the smooth ingress of millions of small packages from around the world into the US.
Impact on Other Regions
Even Australia has decided to pause the transit of some packages from other countries bound for the US. The foremost mail carrier in the UK also reported that it has temporarily halted shipments, stating, "We have been working hard with US authorities and international partners to adapt our services to meet the new US 'de minimus' requirements so UK consumers and businesses can continue to use our services when they come into effect."
Previous Changes and Consequences
The 'de minimus' exemption for China was earlier ended by the US in May. The justification provided was that several shippers based in China were using low-value packages to smuggle illicit substances, taking advantage of the 'de minimus' exemption.
The administration also stated that there had been a significant increase in the number of 'de minimus' shipments entering the US, rising from 134 million to 1.34 billion within a decade. This had also benefited Chinese-based fast fashion companies, which ship directly to customers.
As the world adapts to these new shipping regulations, it is yet to be seen how both businesses and consumers will be affected in the long term. The hope is for a swift resolution and return to normalcy in international shipping to the US.