What's Happening?
European postal services have temporarily stopped accepting parcels bound for the United States due to new US customs regulations that eliminate the duty-free threshold for low-value imports. This change, effective from August 29, follows an executive order by President Trump, requiring full customs clearance and duties for almost all commercial parcels. DHL Parcel Germany and Royal Mail are among the operators pausing services, with the Universal Postal Union confirming that around 25 member states have suspended certain consignments to the US. The disruption is significant, as the US processed approximately 1.36 billion de minimis packages in fiscal year 2024, with Europe being a major source of these exports.
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Why It's Important?
The suspension of parcel services to the US is expected to have a substantial impact on small businesses and cross-border trade. European sellers, who rely on low-cost postal channels to reach US customers, may face increased costs and logistical challenges. The new customs requirements could lead to higher expenses and more paperwork for businesses, potentially affecting their competitiveness in the US market. The disruption highlights the complexities of international trade regulations and their direct impact on global commerce.
What's Next?
Postal operators are working to adapt their systems to comply with the new US customs requirements, with some indicating that service interruptions may last only a few days. The Universal Postal Union is coordinating efforts to standardize duty collection and data flows, which could facilitate the resumption of services. Businesses may need to explore alternative shipping methods or US-based fulfillment options to mitigate the impact of the suspension.
