US tariff changes disrupt parcel exports for Australian businesses

Australia Post has announced a temporary suspension of small parcel shipments to the United States (US) and Puerto Rico, following changes to US import tariff regulations. The suspension, effective 26 August 2025, is in response to new requirements under US Executive Order 14324, which significantly alters import tariff regulations by suspending the long-standing de minimis rule. Previously, goods valued under USD $800 could enter the US without incurring customs duties or undergoing full inspection. The new order removes this exemption, requiring all international parcels, regardless of value, to be subject to duties and customs processing.

This development presents a new layer of complexity for small Australian businesses that rely on affordable postal services to reach their customers in the US. Increased costs, longer delivery times, and additional compliance requirements may impact their ability to compete in the US marketplace.

What’s changed?

The US Customs and Border Protection (CBP) now requires:

• Prepayment of duties and taxes on all shipments before arrival
• Removal of the de minimis USD $800 exemption, meaning even low-value goods are now subject to duties
• Mandatory customs declarations, including detailed information such as country of origin, item value (no less than AUD $1), and Harmonised System (HS) tariff codes.

Australia Post, along with a number of other international postal operators, has suspended parcel services to ensure compliance with these new regulations. Letters, documents of no commercial value and gifts of less than USD100 are still accepted but must meet the new declaration standards.

Implications for small parcel exporters

For smaller businesses and businesses that ship B2C, this change introduces immediate logistical and financial challenges. Many rely on Australia Post’s cost-effective parcel services to maintain international customer relationships and grow their presence in the US market. With the suspension in place, businesses must now consider alternative shipping providers, often at significantly higher cost, or wait for Australia Post’s service to resume.

To support compliance with the new US regulations, Australia Post has partnered with Zonos, a third-party provider authorised by US Customs and Border Protection. Zonos will enable businesses to meet the requirement that all duties are prepaid prior to shipment by offering a solution to calculate, collect, and remit duties and taxes before goods arrive in the US. Exporters will need to create a Verified Account with Zonos to calculate and prepay duties and taxes and link this account to their Australia Post profile before shipments to the US and Puerto Rico can resume. While Australia Post has not yet confirmed the cost of using Zonos, businesses should anticipate potential fees associated with account setup or transaction processing.

Under Executive Order 14324, transportation carriers must collect and remit duties to CBP using one of two methodologies:

• Ad valorem duty - A duty equal to the effective International Emergency Economic Powers Act (IEEPA) tariff rate applicable to the country of origin, assessed on the value of each dutiable postal item
• Specific duty per item, based on the effective IEEPA tariff rate:
  • Less than 16 per cent: USD $80 per item
  • Between 16 per cent and 25 per cent: USD $160 per item
  • Above 25 per cent: USD $200 per item.

Each transportation carrier must apply the same methodology across all shipments during any given period and may change it no more than once per calendar month, with 24 hours’ notice to CBP. Additionally, the country of origin must be declared for all international postal shipments. These requirements add complexity for exporters, who must now ensure accurate tariff classification and origin documentation for each shipment.

Broader implications

The suspension of parcel services to the United States and Puerto Rico affects a broad range of small and medium-sized Australian businesses, including those using the Australia Post suite of services including; For many of these exporters, particularly in eCommerce, boutique manufacturing, and niche product categories, affordable and reliable access to the US market is essential for sustaining growth and customer relationships.

While letters, documents, and gifts (excluding alcohol, tobacco and perfume containing alcohol) up to $100 remain unaffected, the disruption to parcel services highlights a broader shift in global trade compliance. Australia is one of many countries now adjusting to the United States’ revised import framework, which has introduced stricter customs requirements and removed exemptions for low-value goods.

Looking ahead

While Australia Post has committed to reinstating services once the Zonos integration is complete, no timeline has been confirmed. In the interim, small exporters face increased costs, administrative overhead, and potential disruption to customer relationships in the US.

Beyond the immediate operational challenges, this shift signals a broader need for small businesses to reassess their international shipping strategies. Businesses may need to explore alternative logistics providers, invest in digital customs compliance tools, or adjust pricing models to account for new duties and taxes. For many, this will require balancing cost efficiency with customer expectations in a competitive global market.

It’s also an opportunity for businesses to strengthen their resilience by reviewing supply chain dependencies, diversifying export markets, and building internal capabilities around trade compliance. As global regulatory environments continue to evolve, proactive planning and informed decision-making will be essential to maintaining international growth.

How BDO can help

Now is the time for Australian companies to seek expert advice on mitigating the financial impact of the US tariffs. With careful planning, businesses can find ways to adapt and continue to thrive despite the changing global trade environment.

Our experienced customs, international trade and excise experts can support your business plan for additional tariffs if or when they are implemented in the US. Contact us today to learn more about how we can support your business.