Due to uncertainties around the expiration of the so-called de minimis tariff exemption this week, several postal agencies in Europe and Asia have begun to halt or stop shipments to the United States.
Why it's important In the upcoming days, small-dollar business and gift-giving may come to a complete stop, endangering the annual flow of hundreds of millions of gifts.
Quick catch-up: The de minimis exemption, which exempted packages valued at $800 or less from tariffs, was formally removed by President Trump in late July.
He had previously removed the exemption for packages coming from China; starting on August 29, it will no longer apply to packages coming from any other nation.
Zoom out: Many foreign carriers have chosen to completely stop sending shipments to the United States, alleging a lack of time to establish enforcement measures and confusion regarding the new regulations.
As of Sunday, at least 16 national postal operators on the continent were named by PostEurop, a trade association representing them, as planning to halt or limit shipments to the United States as a result of the new rules.
Asian carriers are starting to use the same strategy.
Zoom in: With intentions to start implementing the new price system as early as Thursday, Royal Mail, a company based in the United Kingdom, announced that it will terminate its current shipment services this coming Tuesday.
As of August 23, Belgium's Bpost suspended shipments while it worked to put a new system in place.
On August 22, Deutsche Post of Germany implemented the same limitations.
Postal officials in the Nordic nations, France, Greece, and Austria, among others, warned that shipments would be interrupted.
On Monday, Japan Post announced that it would similarly stop accepting packages for transportation to the United States, citing the fact that the steps outlined by U.S. Customs and Border Protection to adhere to the new regulations are "not clear."
By the numbers: Approximately 60% of the 1.3 billion parcels that were allowed to enter the United States last year under de minimis restrictions came from China.
Discount stores like Shein and Temu have already been greatly impacted by the changes, as their shipments to the United States have suddenly become significantly more expensive.
In summary, tariffs are no longer limited to cargo ships carrying enormous containers.
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