International postal services pause parcel post to US over tariff 'ambiguity'

A US executive order reinstating duty on small packages is proving to be a big headache for international postal services. 

Mexico on Wednesday joined a growing number of countries in suspending package shipments to the United States due to confusion over tariffs on low-value parcels.  

Previously, packages worth less than $800 could enter the US duty free due to the so-called ‘de minimis’ exemption. But that comes to an end on Friday thanks to a US executive order President Trump signed last month.  

Goods that previously entered the US without needing to clear customs will require vetting and be subject to their origin country's tariff rate – which can range from 10 to 50 percent. 

International postal services in Japan, Australia, India and a number of European countries have already paused the shipment of packages to America. They say there’s too much ambiguity about the kind of goods covered by the new rules, and no time to process their implications.  

In a statement last week, French mail service La Poste said the US didn't provide full technical details or allow enough time for the French postal service to prepare for the new customs procedures.  

La Poste expressed regret over the situation and said it is continuing to work with U.S. authorities to resolve the issue as soon as possible. In the meantime, La Poste said gifts worth less than $100 dollars sent by individuals could still be mailed.  

A trade framework agreed by Washington and Brussels last month set a 15 percent tariff on the vast majority of products shipped from the European Union. Packages under $800 will now also be subject to the tariff. 

Proponents of limiting the exemption say it’s allowed Chinese retail platforms to flood the US with low-priced goods. But some smaller US businesses that rely on the imported products could be hit hard by the roll-back.  

A total of 1.36 billion packages with a combined value of $64.6 billion reached the US last year, the US Customs and Border Protection agency reported. Of those, about 60 percent came from China and Hong Kong, according to an analysis based on US government data. Multiple countries and regions accounted for the remainder, including Canada, Mexico, the European Union, India and Vietnam.