Australia Post Halts US Parcel Deliveries Amid Tariff Turmoil
Australia Post has announced that parcels headed to the United States will no longer be accepted, at least for now, and the move has caught the attention of businesses and everyday senders across the country. This sudden pause was not something Australia Post wanted to do, but it became unavoidable after major changes were introduced by the US government to its customs and import rules.
Here’s what happened. The United States recently scrapped a long-standing exemption that allowed low-value packages—anything worth under $US800, or about $A1200—to enter the country duty free. Instead, tariffs must now be prepaid before an item even arrives. For Australians, that means sending anything over $A150 through the regular postal system is off the table. Only letters, documents, and small gifts valued under that threshold are unaffected.
Australia Post said it was “disappointed” by the situation but stressed the suspension is temporary. It applies not only to the US mainland but also to Puerto Rico, which is under US customs rules. Parcels lodged after August 26 will not be accepted until a solution is put in place.
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The timing is especially tough for small and medium businesses that rely on American customers. Many are already scrambling to find alternatives. Commercial shipping giants like DHL and FedEx will still carry Australian goods to the US, but the catch is that they often cost much more. Shippit, a company that partners with Australia Post to help businesses send parcels overseas, explained that while the commercial channels remain open, they will inevitably be pricier for sellers and consumers alike.
Australia is not alone in this predicament. Postal services across Europe and Asia—including France’s La Poste, Germany’s Deutsche Post, Japan Post, and Korea Post—have already suspended or are preparing to suspend their US-bound parcel deliveries. The global postal network has been thrown into confusion as the new tariffs take effect.
Still, efforts are underway to ease the disruption. Australia Post is working with Zonos, a US Customs and Border Protection-authorised provider, to build a system that will allow business customers to resume sending parcels, hopefully in the near future. The executive general manager for parcels and ecommerce, Gary Starr, assured that restoring services is a priority, though the complexity of the new US rules means it cannot happen overnight.
Meanwhile, the Australian government has voiced its frustration. Communications Minister Anika Wells criticised the tariffs imposed by President Donald Trump’s administration, saying they unfairly burden exporters and that work is being done to minimise the impact on local businesses.
In the short term, though, small business owners who sell everything from fashion to food to handmade Australian goods are bracing for higher costs and tougher logistics. With Christmas just around the corner and demand for international shipping about to spike, the pause couldn’t have come at a worse time. For now, Australia Post is asking customers to stay updated through its website or by calling its support line, while it races to find a workable path forward.
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