AusPost Suspends US Parcel Deliveries Due to Tariffs

Australia Post has announced it will suspend sending parcels to the United States and Puerto Rico from 26 August 2025 due to new US customs and tariff rules introduced by the Trump administration.

Australia is not alone with similar suspensions by postal operators in Europe and Asia which is set to hit Australian small businesses and e-commerce retailers particularly hard. delivering another financial blow to American's and the global economy.

Parcels shipped into the US enjoyed a generous “de minimis” exemption which allowed goods under US800 (about AUD 1,230) to enter duty free. That exemption has been scrapped across the board with tariffs and additional fees now applying to all parcels.

10% Tariff on All Goods Shipped to the U.S

Specifically for Australian Businesses the tariffs will see a baseline 10% tariff to ALL goods shipped to the U.S including an additional US 80 (AUD 123) charge before leaving Australia. Larger tariffs of up to US 200 apply to countries facing higher trade rates.

While letters, documents and gifts under US 100 (AUD 153) remain unaffected and any Australian retailer or individual sending higher value goods will be forced to pay upfront duties, making shipping to the US through Australia Post unviable for now.

Why the suspension and not just pay?

Australia Post said the sudden change was driven by US Customs and Border Protection (CBP) requiring prepayment of duties on all parcels before shipment. Postal providers across the globe have been scrambling to adapt to the changes.

Gary Starr, Australia Post’s Executive General Manager of Parcels and E-commerce stated:

“We are disappointed we have had to take this action; 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 suspension includes Puerto Rico, which is covered by US customs law.

Global Impacts

Australia is far from alone. Postal services in France, Germany, Spain, Italy, Denmark, Sweden, Belgium, the UK, Austria, New Zealand and India have all halted or are preparing to halt parcel shipments to the US.

The US government has framed the changes as a crackdown on the misuse of the de minimis exemption, pointing to concerns about illicit drugs, particularly synthetic opioids like fentanyl, entering the country in small parcels.

President Trump’s executive order claims the move will “close a catastrophic loophole” while also bringing imports from low-tariff nations like Australia under his broader “reciprocal tariffs” policy.

the impacts of these changes are yet to be seen but with a global world being restricted, it is sure to have some impacts.

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Posted Using INLEO