Due to Tariff ‘Ambiguity,’ International Postal Providers Halt Parcel Delivery to the United States
International postal systems are experiencing significant difficulties with a US executive order that reinstates duties on small parcels. Due to uncertainty surrounding taxes on low-value packages, Mexico joined an increasing number of nations in stopping package exports to the United States on Wednesday.
Previously, the so-called “de minimis” exception allowed items under $800 to enter the US duty-free. However, a U.S. executive order signed by President Trump last month ends that on Friday. Products that have already entered the US without going through customs will need to be vetted and will be charged the tariff rate of the nation of origin, which can range from 10 to 50 per cent.
La Poste apologised for the incident and stated that it is still collaborating with U.S. authorities to find a quick solution. According to La Poste, individuals presenting under $100 might still be mailed in the meantime.
The vast majority of goods transported from the European Union are subject to a 15 percent levy under a trade framework that Washington and Brussels agreed upon last month. The levy will now also apply to packages with a value of under $800.
Chinese retail platforms have been able to flood the US with low-priced items, according to those who support restricting the exemption. However, the rollback may have a significant impact on certain smaller US companies that depend on imported goods.
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