European postal services have suspended shipments to the U.S. due to the expiration of a duty-free exemption on low-value packages.

De Minimis Turmoil

The expiration of the “de minimis” exemption, which allowed packages valued under $800 to enter the U.S. without tariffs, is causing turmoil in the shipping industry, according to Fortune.

In 2024, 1.36 billion packages worth $64.6 billion were shipped under this rule. With the exemption set to expire on Friday, postal services in Germany, Denmark, Sweden, and Italy have immediately halted most shipments to the U.S.

France, Austria, UK To Join Germany, Denmark, Sweden, And Italy

France and Austria are expected to follow suit on Monday, while the U.K.'s Royal Mail plans to cease shipments on Tuesday to ensure deliveries before duties apply. Items from the U.K. over $100 will face a 10% duty.

DHL, Europe’s largest shipping provider, announced it would stop accepting parcels for the U.S. from business customers starting Saturday. The U.S. and EU trade framework agreed last month imposes a 15% tariff on most EU products, including those under $800.

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European postal services are pausing deliveries due to ambiguity about the new rules and insufficient time to adapt. Postnord and Poste Italiane announced similar suspensions, while PostNL is working with U.S. counterparts to address the issue.

Why De Minimis Was Brought To An End

The expiration of the de minimis exemption is part of a broader trade policy shift initiated by President Donald Trump. This policy aims to curb tariff evasion and enhance import oversight. The change affects global e-commerce, disrupting the flow of 1.36 billion packages annually.

Additionally, the policy targets Chinese e-commerce platforms and Amazon.com Inc. (NASDAQ:AMZN) rivals like PDD Holdings Inc.'s (NASDAQ:PDD) Temu and Shein, which rely heavily on the U.S. market.

Moreover, South Korea’s Korea Post has also suspended U.S.-bound mail, highlighting the global ripple effect of the new import rules.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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