European postal services halt shipments to US: Here's why
What's the story
Multiple European postal services have temporarily halted shipments to the United States. The move comes in light of the impending expiration of the 'de minimis' exemption, which allowed duty-free entry for packages worth less than $800. The change is part of a trade framework and Trump administration policies that introduced tariffs and raised questions about collection and data transmission processes.
Exemption details
'De minimis' exemption's significance
The 'de minimis' exemption, which expired on Friday, has been a major facilitator of international trade. In 2024 alone, 1.36 billion packages worth $64.6 billion were imported into the US under this exemption, according to data from the US Customs and Border Patrol Agency. However, with its expiration, many European postal services have announced their decision to suspend shipments until further clarity on the new rules is provided.
Shipment suspension
Several countries announce immediate suspension
Germany, Denmark, Sweden, and Italy have all announced an immediate suspension of most merchandise shipments to the US. France and Austria are expected to follow suit on Monday. The UK's Royal Mail will also halt shipments starting Tuesday, giving time for packages to reach their destination before new duties come into effect. Items from the UK worth over $100 will now attract a 10% duty.
Duty concerns
DHL's concerns over new customs duties
DHL, Europe's largest shipping provider, has expressed concerns over the new customs duties. The company said it is "unable to accept and transport parcels and postal items containing goods from business customers destined for the US." This comes as a result of unresolved questions about how and by whom customs duties will be collected in the future, what additional data will be required, and how this information would be transmitted to US Customs and Border Protection.
Tariff introduction
Trade framework and its implications
A trade framework agreed upon by the US and European Union last month has introduced a 15% tariff on most products shipped from the EU. Now, packages under $800 will also be subject to this tariff. The US duty-free exemption for goods from China was removed in May as part of Trump administration's efforts to prevent American consumers from buying low-value Chinese goods.
Clarity sought
Uncertainty leads to widespread suspensions
Many European postal services have suspended deliveries as they can't guarantee goods will reach the US before August 29. They cite uncertainty over what type of goods are covered by the new rules and insufficient time to understand their implications. Postnord, a Nordic logistics company, and Italy's postal service have also announced similar suspensions effective Saturday.