Australia Post Halts Some US Parcels: What It Means for Australian Businesses

Australian businesses woke up this week to a significant trade headache: Australia Post has temporarily suspended certain parcel services to the United States and Puerto Rico, citing new U.S. tariff rules that upend how goods enter the country.

The change comes after the U.S. scrapped its long-standing “de minimis” exemption, which had allowed packages valued under US$800 to enter tariff-free. From 29 August 2025, every inbound parcel, regardless of value, is subject to tariffs and heightened customs checks.

Why Has Australia Post Suspended Shipments?

Australia Post says the pause is necessary while it updates systems to handle the new requirements, including:

• Upfront tariff prepayment before parcels leave Australia.

• Additional customs declarations for every item.

• Increased processing time at the U.S. border.

The suspension applies to business contract, MyPost Business, and retail parcel customers, though letters, documents, and small gifts under US$100 are still moving.

Australia is not alone—postal providers across Europe, Asia, and New Zealand have made similar moves in response to the U.S. changes.

The Impact on Australian Exporters

Small Businesses Hit Hardest

For many small exporters, the U.S. has been a lucrative market, now suddenly far more expensive to reach.

• Lash Therapy Australia, a beauty brand popular on TikTok, says sales have plunged since parcels to U.S. customers were cut off.

• Haus of Denim and Lace, an Etsy-based seller of handmade robes, refunded hundreds of U.S. orders, losing access to nearly 70% of its customer base overnight.

Rising Costs

Some business owners report that shipping costs now exceed the cost of making their products. Lightweight or lower-value goods—like handmade items, gifts, and apparel—are especially affected.

Industry Adaptations

Carriers and logistics firms are scrambling to offer workarounds. Australia Post is working with Zonos, a U.S. customs partner, to enable tariff prepayments for businesses. Competitors like Sendle are also developing Delivered Duty Paid (DDP) services, which would let businesses pre-pay tariffs at booking and avoid customer delays.

The Bigger Picture

The parcel suspension is just the latest ripple in a tougher U.S. trade environment. Earlier in 2025, the Trump administration imposed a 10% baseline tariff on most Australian goods, alongside steep levies—up to **50%—on commodities like steel and aluminium.

For small exporters, who have long relied on affordable access to the U.S. market, the new rules mean rethinking pricing, logistics, and even business models.

Australia Post’s suspension highlights how political decisions can quickly reshape global trade realities. For Australian businesses, especially small exporters, this is a moment to adapt swiftly, by rethinking logistics strategies, leveraging new shipping solutions, and building resilience against policy-driven disruptions.

While the pause may be temporary, the broader challenge of U.S. tariffs is here to stay. Businesses that act now to adjust will be better placed to hold onto their share of one of the world’s most valuable markets.