Australia Post has stopped sending some packages to the U.S.

Australia Post has announced it will “temporarily suspend” business-related parcel post to the U.S.

It confirmed the change was because of the tariffs imposed by U.S. President Donald Trump.

The change is effective from today. It does not affect letters or gifts worth less than $US100 ($AU150).

Tariffs

A tariff is a tax on imports. It’s applied to foreign-made goods brought into another country and paid by the importer.

For example: Country A and Country B make the same product. Country A wants its citizens to buy its own version of the product, not Country B’s, so it applies a tariff.

Importers in Country A now pay the tax when they bring in B’s product, and pass on the cost to consumers, making this version of the product more expensive to buy.

The change comes as the U.S. suspends the ‘de minimis’ tax exemption on all countries, which allowed goods valued at $US800 ($AU1,200) or less to enter tax-free.

The White House has called de minimis shipments a “catastrophic loophole”.

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In July, Trump signed an executive order stopping the exemption from 29 August.

AusPost

AusPost said the suspension will impact many businesses posting parcels to the U.S. Gifts under $US100 ($AU150), letters, and documents will not be affected.

AusPost Executive Manager Gary Starr said: “We are disappointed we have had to take this action, however [it is] necessary to allow us to develop and implement a workable solution”.

He added that resuming parcel post to the U.S. is a “priority.”

Australia's response

A Federal Government spokesperson told TDA the U.S. decision to remove the exemptions is “disappointing and will only drive up costs for American families and small businesses.”

They said the Government “will work with Australia Post to limit disruption for affected customers [and] continue to advocate for the removal of all tariffs on Australian exports, in line with our free trade agreement.”