European nations pause shipping packages to U.S. over tariffs

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Unclear rules over package exemptions is leading to a pause on shipping of packages by a host of European nations to the U.S.

The exemption, known as the “ de minimis" exemption, allows packages worth less than $800 to come into the U.S. duty free. A total of 1.36 billion packages were sent in 2024 under this exemption, for goods worth $64.6 billion, according to data from the U.S. Customs and Border Patrol Agency.

It is set to expire on Friday, August 29. Yesterday, postal services around Europe announced that they are suspending the shipment of many packages to the United States amid confusion over new import duties.

Postal services in Germany, Denmark, Sweden and Italy said they will stop shipping most merchandise to the U.S. effective immediately. France and Austria will follow on Monday.

The U.K.'s Royal Mail said it would halt shipments to the U.S. on Tuesday to allow time for those packages to arrive before duties kick in. Items originating in the United Kingdom worth over $100 — including gifts to friends and family — will incur a 10% duty, it said.

“Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out,” DHL, the largest shipping provider in Europe, said in a statement.

The company said starting Saturday it “will no longer be able to accept and transport parcels and postal items containing goods from business customers destined for the US.”

A trade framework agreed on by the U.S. and the European Union last month set a 15% tariff on the vast majority of products shipped from the EU. Packages under $800 will now also be subject to the tariff.

The U.S. duty-free exemption for goods originating from China ended in May as part of the Trump administration's efforts to curb American shoppers from ordering low-value Chinese goods. The exemption is being extended to shipments from around the world.

Many European postal services say they are pausing deliveries now because they cannot guarantee the goods will enter the U.S. before Aug. 29. They cite ambiguity about what kind of goods are covered by the new rules, and the lack of time to process their implications.

Starting Monday, Etsy (NASDAQ:ETSY [https://seekingalpha.com/symbol/ETSY]) said it "will be suspending shipping label purchases on Etsy for Australia Post, Canada Post, Evri and Royal Mail for US-bound packages."

"We are in close contact with these carriers and will reactivate label offerings on Etsy when they are able to support orders into the US with DDP options," the company said.

Etsy suggested that shippers use third-party shipping partners that use a Delivered Duty Paid model, which "is a more integrated solution that allows you to manage and pay these costs upfront, at the time of shipping," such as FedEx (FDX [https://seekingalpha.com/symbol/FDX]) and UPS (UPS [https://seekingalpha.com/symbol/UPS]).

FedEx said it continues to accept and transport shipments to the US and is unaffected by the postal operators’ decisions, Bloomberg reported.

-- _The Associated Press contributed to this report._