These Countries Suspended Postal Shipments To The US—Here’s Why

Key Concepts:

• Diminimus Rule: Duty exemptions for lower value shipments entering the US.
• Tariffs: Taxes imposed on imported goods.
• Executive Order: A directive issued by the President of the United States that manages operations of the federal government.
• Suspension of Package Shipments: Temporary halt of package deliveries to the US by international postal services.

Suspension of Package Shipments to the US

Several countries' postal services, including Mexico, India, Japan, Australia, Taiwan, the UK, France, Germany, Italy, South Korea, and Singapore, have suspended package shipments to the US due to President Trump's tariffs and new rules ending the diminimus rule. This rule previously exempted lower-value shipments from duties.

Mexico's Response

Mexico's postal service has temporarily suspended package shipments to the US and is in discussions with US officials and international postal organizations to find a way to resume services in an orderly manner.

Executive Order Details

The July executive order ending the diminimus exemption imposes levies based on the tariff rate of the sending country:

• $80 per item for countries with tariff rates less than 16%.
• $160 per item for countries with tariff rates between 16% and 25%.
• $200 per item for countries with tariff rates above 25%.

Impacted Services

The suspension primarily affects package shipments. Letters, documents, and postcards are generally not impacted.

Timeline of Suspensions

• Earlier this week: Australia, Taiwan, and Japan announced suspensions.
• A week earlier: India, the UK, and dozens of EU members (including France, Germany, and Italy) announced suspensions.
• Last week: Several countries in the Asia-Pacific region, including South Korea and Singapore, halted shipments.
• April: Trump signed an executive order eliminating the diminimus provision for imports from China and Hong Kong, which took effect in May.
• End of diminimus exemptions on shipments from other countries: Set to end on Friday as per an executive order signed late last month.

Conclusion

The suspension of package shipments to the US by numerous countries' postal services is a direct consequence of President Trump's tariffs and the elimination of the diminimus rule. The new levies imposed on shipments are prompting these countries to halt services until a resolution can be found. The situation is evolving, with ongoing discussions between postal services and US officials.