25 countries suspend US-bound packages over tariffs, UN body says
GENEVA: At least 25 countries have suspended package deliveries to the United States, the Universal Postal Union (UPU) said on Tuesday (Aug 26), after Washington announced it would scrap a tax exemption on small parcels.
The Trump administration’s decision takes effect on Friday and has triggered suspensions by postal services in countries including France, Britain, Germany, Italy, India, Australia and Japan. Most will no longer accept US-bound packages until there is clarity on how the new rules will be enforced.
The UPU, a United Nations body, said member countries cited uncertainty over how American authorities plan to implement the changes. It warned of “considerable operational changes” for postal operators worldwide.
NEW TARIFF RULES
From Friday, postal carriers will be required to collect customs duties from senders in advance on behalf of US Customs and Border Protection.
India’s communications ministry said several processes, such as the designation of “qualified parties” to handle duty collection, remained undefined.
The Trump administration has said parcels worth up to US$100 sent as gifts can still enter the country tax-free. But items above that threshold will be subject to tariffs, including 15 per cent for goods from the European Union and 50 per cent for India.
Germany’s DHL warned that even exempted items will face extra checks to prevent misuse for commercial shipments.
CONCERNS OVER E-COMMERCE
The UPU, which was founded in 1874 and has 192 member states, said it was working with postal operators and US authorities to minimise disruption.
UPU chief Masahiko Metoki sent a letter to US Secretary of State Marco Rubio on Monday to convey concern over the short implementation timeline.
The union warned the measures could particularly disrupt the booming cross-border e-commerce trade and said it was exploring long-term solutions to facilitate duty collection across its network.
