Countdown to U.S. Small Parcel Duty Exemption Expiry Sparks Suspension of Shipments by 25 Countries

date
27/08/2025
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GMT Eight
The Universal Postal Union reported that 25 member countries have suspended outbound parcel services to the U.S., driven by uncertainties over new transit procedures under the U.S. tariff rule change taking effect August 29.

Amid uncertainty surrounding new U.S. tariff regulations, an increasing number of nations have announced the suspension of parcel deliveries to the United States. According to CCTV News, data released by the Universal Postal Union (UPU) on August 26 revealed that 25 member countries have halted outbound postal services to the U.S., citing unclear transit procedures under the incoming rules.

The UPU confirmed receipt of notifications from these 25 postal operators, each indicating a suspension of mail services bound for the United States until further guidance is provided. In an official statement, the organization explained that these measures will remain in effect “pending detailed information on how the announced U.S. measures will be implemented and the operational adjustments required.”

On August 25, the UPU also conveyed its concerns in a letter to U.S. Secretary of State Rubio, emphasizing the logistical disruptions caused by the looming tariff changes. Headquartered in Switzerland, the UPU is the intergovernmental body responsible for coordinating international postal affairs among its 192 member states, with a mandate to enhance and streamline global mail services.

Although postal administrations in Australia, Norway, and Switzerland have publicly confirmed their participation in the suspension, the UPU has not disclosed the full roster of affected nations. The move follows President Trump’s July 30 announcement that, effective August 29, the longstanding duty exemption for parcels valued at USD 800 or less would be revoked, rendering all such shipments subject to standard taxes and fees.

In response, several postal services cited the lack of clear guidance and the limited time frame to implement new systems as reasons for suspending either partial or full parcel services to the U.S. On August 26, Russia Post declared a halt to all goods shipments to America—though ordinary letters remain unaffected—while Bulgaria Post suspended acceptance of all outbound parcels. Australia Post likewise paused most parcel services to the U.S., except for letters, documents, and gift parcels under USD 100. South Korea’s postal authority announced the suspension of EMS services, directing customers to use UPS for U.S. shipments, with recipients responsible for any tariffs.

In recent days, postal agencies across Europe—including France, Germany, Italy, Spain, Portugal, Austria, Belgium, Sweden, Switzerland, and Denmark—as well as those in India, Japan, Thailand, and Singapore, have issued similar suspension notices.

Analysts warn that the end of the small-parcel exemption will burden American consumers, who can expect increased costs, and will disrupt cross-border e-commerce platforms and logistics providers. U.S. Customs estimates that more than 1.36 billion small-parcel shipments entered the country in the last fiscal year, with daily volumes exceeding 4 million items. Research by the National Bureau of Economic Research indicates that 73 percent of cross-border purchases in the nation’s poorest regions relied on the small-parcel exemption, and its removal could impose an additional USD 11–13 billion cost on U.S. households.