Australia Post to halt parcel shipments to the US

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Australia Post will temporarily suspend the postal sending of parcels to the United States and Puerto Rico.

The change is set to affect Australian retailers shipping to the US and those sending gifts valued at over $150.

What parcels will be affected?

From 26 August 2025, postal goods sent to the US and Puerto Rico will not be accepted by Australia Post. Not all Australia Post parcels will be affected.

The change will primarily affect Australian businesses that are selling to American customers, or Australians sending over expensive presents to loved ones across the ocean.

The temporary suspension will impact businesses shipping goods to retail customers in the US, including those using MyPost Business and Business Contract.

This will affect many Australian e-commerce retailers, with some needing to make the decision overnight to halt serving customers in the region.

Ordinary letters and documents, as well as gifts valued under US$100 ($153), are unaffected by the change.

That means that if you’re planning on sending a loved one an Aussie care package with Vegemite and Tim Tams, you’ll want to make sure that it’s valued under $153.

International shipping brand DHL said any parcels declared as a gift would be subject to “even stricter controls than before to prevent the misuse of private gift shipments for sending commercial goods”.

Why is Australia Post suspending parcels to the US?

The Trump administration is set to change customs rules for parcels. Until now, low-value packages heading to the US were subject to the “De Minimis” exemption — which allows parcels and goods valued below US$800 (about $1,200) to enter the country duty-free.

The exemption for China and Hong Kong ended in May, with Trump extending the decision to affect all countries starting 29 August.

Australia Post’s temporary partial suspension also includes parcels to Puerto Rico, as it is a US customs territory and has also been impacted by tariff changes.

How much more will it cost to send parcels to the US?

From 29 August, parcels entering the US will be subject to the tariff imposed on that country.

Australian goods are subject to the baseline 10 per cent tariff.

For countries with a tariff rate of 15 per cent or less, like Australia, each package will incur an additional charge of US$80 ($123).

Parcels from countries with tariffs between 16 and 25 per cent will incur an additional US$160 ($247) charge. Countries with a tariff rate of more than 25 per cent will be charged an extra US$200 ($308).

The new rules would mean Australian businesses shipping to the US would need to pay import duties before the shipment leaves for the US.

What other countries have done the same?

Australia Post says its action is in line with other postal operators globally.

Postal services across Europe have already suspended most parcel shipments to the US, including France’s La Poste, Germany’s Deutsche Post, Spain’s Correos, Poste Italiane and the Belgian, Swedish and Danish postal services.

Austria’s Österreichische Post and the United Kingdom’s Royal Mail are expected to stop sending parcels to the US by the end of August.

In the meantime, Australia Post is working with Zonos, an authorised US Customs and Border Protection third-party provider, on a solution for business customers.

Gary Starr, Australia Post’s executive general manager of parcels, post and e-commerce services, said: “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.”

“Australia Post continues to work with US and Australian authorities and international postal partners to resume postal service to the US as a priority,” he said.

What’s the reaction been?

It’s believed Australian businesses will still be able to send parcels to the US through more expensive commercial models like DHL and FedEx.

But this might not be viable for many Australian businesses, who have announced they’ll be suspending shipping to the US and Puerto Rico immediately.

Stephen Just, a bespoke fountain pen maker from Brisbane, said he has had to suspend sales to the US “effective immediately”.

“It’s still unclear at this stage what exactly is going to happen and if Australia Post can come up with a solution to this anytime soon. So I have no choice but to suspend sales until more information becomes available,” he wrote on his business’s Instagram page.

“My only other option currently for international shipping is DHL, the shipping cost starts at $55 AUD or $65 … for some addresses into the US it can be as much as $120 AUD.”

Natural Fibre Arts, a hand-dyed yarn business based in Perth, was forced to expedite orders before the changes took place. Now, they’ve needed to pause new orders from the US.

Both businesses said if they continue shipping to the US, the tariff would need to be paid to the US Customs and Border Protection before the product enters the country.

Australian book small business, Beyond The Pages, said it was “doing everything to minimise the impact, including declaring the lowest possible parcel values”.

But for now, it’s a state of limbo for many Australian businesses.

— With additional reporting by Australian Associated Press