Tariff changes: Australia Post suspends parcel service to America after US moves to remove duty-free exemption

Australian parcel postage to the United States has been suspended ahead of Donald Trump’s changes to tariffs on imports.

Australia Post partially halted their service on Tuesday but will still allow letters, documents and packages declared as gifts under $US100 ($154).

From Friday, the Trump administration will end the “de minimis exemption” that permits parcels valued under $US800 enter duty free.

Parcels over this value will require a prepaid tariff payment before entering America.

Australia Post’s parcel and ecommerce boss Gary Starr said it was “unavoidable” but admitted the Government-owned corporation was disappointed.

He insisted the decision was “temporary” amid a “rapidly evolving situation” and Australia Post was working towards a solution.

“Australia Post is focused on providing a reliable and competitive postal service for customers sending parcels internationally,” Mr Starr said.

“We are disappointed we have had to take this action, however, due to the complex and rapidly evolving situation, a temporary partial suspension has been necessary to allow us to develop and implement a workable solution for our customers.

“Australia Post continues to work with US and Australian authorities and international postal partners to resume postal service to the US as a priority.”

Australia Post is just one of more than 190 postal services worldwide facing the same rule changes.

It’s understood the hold-up stems from the need to establish a system to accept the prepaid tariff payment, which so far has only two US-approved partners to process them.

It includes the US firm Zonos, which Australia Post named in its official statement on Tuesday, saying it was working with the service to find a way to allow services to resume for Business Contract and My Post Business customers.

Zonos founder Clint Reid took to X this week to hail the shake-up as “exciting news” and said it had signed a new deal with a major foreign postal operator, but didn’t name it.

A spokesman for Communications Minister Anika Wells also labelled the US ending duty-free imports for low-value goods as “disappointing” and estimated it would just increase costs.

“The United States’ decision to remove exemptions from tariffs and duties for low value imports is disappointing and will only drive up costs for American families and small businesses,” he said.

“The Albanese Government will work with Australia Post to limit disruption for affected customers while they make adjustments to comply with new requirements.

“We continue to advocate for the removal of all tariffs on Australian exports, in line with our free trade agreement.”

Opposition small business spokesman Tim Wilson labelled the disruption as “very concerning” for those who relied on the postal service.

“Small businesses are going to be the ones most impacted by this decision. A lot of small businesses depend on Australia Post to ship small goods internationally,” Mr Wilson told Sky News on Tuesday.

The tariff change will also impact Caribbean island Puerto Rico because it’s an unincorporated US territory which falls under American federal customs laws and regulations.

Australians who had hoped to squeeze in parcels before the suspension will also be affected. Australia Post won’t accept goods lodged from Tuesday.

Customers seeking an update can check the Australia Post website or phone 13 POST (13 7678).