Australia Post immediately halts parcel postage to US, only letters, gifts worth less than $100

Australia Post has just immediately suspended most packages and goods being sent to the United States, with limits in place from the government-owned postage service to deliveries of just letters, documents, gifts valued under $150 to get through.

The postal service has taken some rather huge steps in stopping any forms of postage to the US, after the Trump administration tariff on low-value parcels is due to come into effect soon. Australia Post will still deliver letters and documents, as well as packages that are declared as gifts that are worth under $100 USD ($153 AUD).

Gary Starr, the executive general manager of parcel, post and e-commerce services at Australia Post said: "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. Specifically, the requirement for duties and taxes to be prepaid on all shipments prior to their arrival in the US.".

He added: "Australia Post continues to work with US and Australian authorities and international postal partners to resume postal services to the US as a priority".

Australia Post said it was working with a third-party provider that's authorized by US customs to find a solution that would allow shipping to the US to resume, with the company saying its customers affected will get a notification when the new system is ready.

A spokesperson for the Australian government commented on the new US tariff rule, saying that it is "disappointing and will only drive up costs for American families and small businesses. The Albanese Government will work with Australia Post to limit disruption for affected customers while they make adjustments to comply with new requirements".

The immediate halt in shipments to the US will severely impact Australian businesses, with packages far larger and more expensive now banned from being shipped to America.

Australia Post's decision is effective immediately, starting today August 26 until "further notice". Until now, parcels valued at less than $800 USD ($1230 AUD) weren't taxed when they arrived in the US, under an exemption by thousands of Australian businesses and retailers, to send items and packages to the US duty-free.

This tax exemption will end on August 29 for imports from ALL countries across the planet, with low-value parcels to be hit with tariffs or flat fees. The huge change has caught many postal operators across the planet off guard with the news almost coming out of nowhere after the decision was finalized in a new executive order on July 30.

The new guidelines out of the US government states the parcels will either be levied with tariffs associated with their "country of origin" or pay flat fees of more than $80 USD.

Australia isn't the only country to almost ban postage to the US under its government-owned postal service, but countries including South Korea, Italy, and Norway have also suspended multiple forms of shipping to the US.

There are reports that privately-owned carriers operating in Australia shipping to the US will continue, despite the upcoming exemption ending. Shippit boss Rob Hango-Zada told ABS News that his company is "prepared for this change and are continuing to ship to the US as normal".