Europe to halt postal services to US after tax deal scrapped

Several European countries will be halting their postal services to the US after US President Donald Trump scapped a tax exemption on low-import goods worth less than $800 (€682) last month.

The White House said it is aiming to combat illegal and abusive practices, such as the importation of illegal drugs into the United States.

Letters and small parcels under $100 (€85) will not be affected.

Postal services in Germany, Denmark, Sweden and Italy said they will stop shipping most merchandise to the US effective immediately. France and Austria will follow Monday, and the United Kingdom Tuesday.

Portugal has not taken any action as of yet.

The UK's Royal Mail said it hoped to have a new system up and running in the next few days to allow it to comply with the new rules. Deutsche Post and DHL Parcel Germany said "key questions remain unresolved" in regard to customs taxes.

In France, La Poste says no time has been given to European postal operators to organize themselves, noting that the specifications and technical details are still “incomplete” on the US side.

Spain's Correos has justified the temporary suspension as a preventive measure “in order to protect the interests of customers,” thus avoiding possible delays or problems in the delivery process.

Starting Saturday, Deutsche Post and DHL Parcel Germany said they “will no longer be able to accept and transport parcels and postal items containing goods from business customers destined for the US."

Postnord, the Nordic logistics company, and Italy's postal service announced similar suspensions.

In the Netherlands, PostNL spokesperson Wout Witteveen said the Trump administration is pressing ahead with the new duties despite US authorities lacking a system to collect them. He said that PostNL is working closely with its US counterparts to find a solution.

Austrian Post, Austria’s leading logistics and postal service provider, stated that the last acceptance of commercial shipments to the US, including Puerto Rico, will take place Tuesday.

This regulatory change will have a significant impact on transatlantic e-commerce, especially for small and medium-sized companies that export low-value products to the United States.

The elimination of the tax exemptions means that all commercial packages will be subject to the corresponding tariffs based on the origin and value of the product as of August 29.

Trump's announcement comes after the US and the European Union agreed on a new trade deal, ending months of tensions.