Tariff changes: Australia Post suspends parcel | Australian Markets

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

Australia Post partially halted their service on Tuesday however will nonetheless enable letters, paperwork and packages declared as items beneath $US100 ($154).

From Friday, the Trump administration will finish the “de minimis exemption” that allows parcels valued beneath $US800 enter obligation free.

Parcels over this worth will require a pay as you go tariff fee earlier than getting into America.

It’s understood the hold-up stems from the need to ascertain a system to simply accept the pay as you go tariff fee, which thus far has solely two US-approved companions to course of them.

Australia Post’s parcel and ecommerce boss Gary Starr stated it was “unavoidable” however admitted the Government-owned company was disenchanted.

He insisted the choice was “temporary” amid a “rapidly evolving situation” and Australia Post was working in the direction of a resolution.

“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,” Mr Starr stated.

Australia Post is only one of more than 190 postal companies worldwide going through the identical rule modifications.

A spokesman for Communications Minister Anika Wells additionally labelled the US ending duty-free imports for low-value items as “disappointing” and estimated it will simply increase prices.

“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 stated.

“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.”

It comes as Australia’s tech regulation might be the latest space impacted by Trump’s tariffs battle after the US president signalled outrage at any nations which attempt to rein in US tech firms.

The US President was scathing in a post to TruthSocial on Tuesday, saying he would put nations “on notice” in the event that they sought to intervene with their operations.

It comes amid the Albanese Government’s proposed News Bargaining Incentive, which might compel main social media and search firms to both attain industrial agreements with Australian media retailers or face a separate charge.

Opposition small business spokesman Tim Wilson labelled the disruption as “very concerning” for many 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 instructed Sky News on Tuesday.

The tariff change can even affect Caribbean island Puerto Rico as a result of it’s an unincorporated US territory which falls beneath American federal customs legal guidelines and laws.

One of the US-approved companions to course of funds is American firm Zonos.

Australia Post had talked about in its official assertion on Tuesday, saying it was working with Zonos to seek out a technique to enable companies to renew for Business Contract and My Post Business clients.

Zonos founder Clint Reid took to X this week to hail the shake-up as “exciting news” and stated it had signed a new deal with a main international postal operator, however didn’t identify it.

Customers searching for an replace can verify the Australia Post web site or telephone 13 POST (13 7678).