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Tariffs

European Postal Services Halt Parcel Deliveries to the US Amid Duty-Free Rule Changes

Strategic Insights

— 2 min read

The chaos caused by the removal of a key duty-free exemption for packages under $800 entering the US has led France's national postal service, La Poste, to suspend most parcel deliveries to the US from Monday. This move, along with others from European postal operators, will cause significant disruptions to transatlantic shipping, affecting millions of packages and billions of dollars in trade. As the world's top e-commerce markets, the US and Europe have been key beneficiaries of the duty-free exemption, which has allowed packages worth under $800 to enter the US duty-free.

Key Takeaways:

  • France's national postal service, La Poste, will suspend most parcel deliveries to the US from Monday, citing uncertainty and lack of time to prepare for the new import rules.
  • The suspension will affect gifts, e-commerce orders, and other goods, but not mail without merchandise, such as letters and documents.
  • Other European postal operators, including Germany, Denmark, Sweden, Italy, and Austria, have already suspended or plan to suspend most merchandise shipments to the US.
  • DHL, Europe's largest shipping provider, has stopped accepting parcels destined for the US from its European business customers.
  • The government shutdown may be a significant contributor to the widespread disruptions in transatlantic shipping.
  • PostEurop, the umbrella association for European postal operators, has warned that if no solution emerges by 29 August, its entire membership may be forced to follow suit.
  • Over one billion parcels worth nearly $65 billion entered the US under the previous duty-free rule last year.
  • The new tariffs, part of a trade agreement between Washington and Brussels, set a 15 percent tariff on the vast majority of EU-origin goods shipped to America.

Statistics:

  • Over one billion parcels worth nearly $65 billion entered the US under the previous duty-free rule last year ("Last year alone over one billion such parcels arrived in the US under this rule, carrying goods worth nearly $65 billion").
  • The new tariffs, part of a trade agreement between Washington and Brussels, set a 15 percent tariff on the vast majority of EU-origin goods shipped to America.
  • Packages under $800, which were previously exempt, will now be subject to tariffs, causing significant disruptions to transatlantic shipping.
  • DHL Express, a private express service, can still deliver to the US, but most European public postal operators have suspended parcels due to uncertainty and lack of time to prepare.

Sources:

  • Radio France Internationale
  • PostEurop, the umbrella association for European postal operators
  • La Poste, the French national postal service
  • DHL, Europe's largest shipping provider
  • Poste Italiane, the Italian postal service
  • PostNord, the Swedish postal service
  • PostNL, the Dutch postal service

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