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Australia Post has temporarily paused accepting international parcels destined for the United States,following a decision by the US Customs and Border Protection (CBP) to enforce stricter regulations regarding de minimis shipments. The move, effective January 21, 2025, impacts the flow of goods benefiting from a tariff exemption for shipments under $800.
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The change stems from a recent order issued by former US President Donald Trump, who labeled the de minimis exemption a “catastrophic loophole.” The order alleges the exemption has been exploited to evade tariffs and facilitate the import of illicit goods,including synthetic opioids like fentanyl.
Australia Post cited the CBP’s increased scrutiny and demand for detailed data on all shipments, a requirement they are currently unable to fully meet. The suspension affects all parcel services, including standard and express options.
Tim Wilson, the shadow minister for small business, expressed “very concerning” sentiments regarding the situation and has called on Australian Ambassador to the US, Kevin Rudd, to engage with the White House and Congress to resolve the issue. He emphasized the potential negative impact on Australian businesses relying on the US market.
Australia is not alone in responding to the US policy shift. Japan and Switzerland have also temporarily halted shipments to the US, indicating a broader international impact.
Trump’s order specifically claims the de minimis exemption has allowed packages to “funnel deadly synthetic opioids as well as other unsafe or below-market products that harm American workers and businesses” into the US. the order states, “President Trump is delivering on his promise to ‘put an end’ to the ‘big scam’ of de minimis shipments killing Americans and hurting U.S. businesses.”