Australia Post suspends US transit shipping in response to tariff exemption repeal

Karl Aguilar

27th Aug 2025

Australia Post has suspended parcel shipping, particularly transit shipping, to the US in response to an impending tariff change that the Trump administration is set to implement effective August 29.

A spokesperson for Australia Post stated: “In line with a number of other postal operators, Australia Post has temporarily suspended its transit service to the US and will no longer accept transit items containing goods destined for the United States of America.”

Transit shipping is the method by which goods coming from other countries are shipped to the US via Australia. With the move, Australia Post has joined other postal carriers across the globe in suspending their US shipping services.

Postal operators caught off guard

The suspension comes in the wake of an executive order signed by US President Donald Trump last July 30. The executive order repealed the US$800 tariff exemption on items coming from Australia, which means items coming from Australia valued at under $800 will now be subject to additional tariffs from August 29.

According to a US Homeland Security spokesman, the repeal of the exemption is meant to close a purported “loophole” that some countries and e-commerce retailers like Temu and Shein were able to exploit, thus flooding the US market with cheap goods that undercut American manufacturers and cost jobs.

The decision has caught many postal operators globally off guard. Kate Muth, who leads the US-based trade association, International Mailers Advisory Group (IMAG), said that many of its members are confused about how to collect these duties, adding that the situation is “a bit chaotic” at the moment.

Small businesses in a conundrum

Given the uncertain and volatile tariff situation in the US, small businesses exporting to the US are faced with a difficult conundrum. Already, some of them have opted to stop shipping their products to the US entirely.

“Tariffs and import duties are not only unpredictable but also difficult for us to absorb or pass on to our customers. What starts as an affordable purchase on our website can quickly become an expensive surprise once additional fees are added at the border,” shared Friederike Kuehn, founder of Rikka Design. “Every decision we make has to balance customer demand with sustainability and costs.”

In the meantime, Australia Post said it is keeping a close eye on the developments as it considers its potential next moves. “Our priority is to keep our customers updated on the changes and what they mean for them,” the company said. “We are actively monitoring for any developments and will continue to provide timely updates.”

• This story was originally published on Inside Small Business.