Global Postal Services in Turmoil: How the U.S. Tariff Shift Is Forcing a Delivery Reset

Thank you for your order! It’ll be there in… well, we can’t actually say.

When the United States announced the end of its de minimis duty-free threshold on imports under $800, the spotlight was on big players like Temu and Shein. But as Tariff D-Day approaches on 29 August 2025, the reality is far more complex: postal services around the world are scrambling to adapt, and it’s anything but smooth.

Global Postal Services in Turmoil: How the U.S. Tariff Shift Is Forcing a Delivery Reset

This isn’t just a story about trade policy; it’s a story about systems under strain, international networks hitting pause, and millions of small businesses wondering how to keep packages moving, at the worst possible time of year.

Because here’s the kicker: we’re heading straight into the peak holiday shopping season. This is when customers start placing Christmas orders, when sellers expect their highest sales, and when delays or disruptions can make or break a business’s year.

Postal Systems Under Pressure

For years, de minimis made low-value international shipping straightforward. Parcels under $800 entered the U.S. duty-free, with minimal paperwork. That simplicity is gone.

Now, every parcel — no matter how small — needs a customs declaration, tariff code, and duty calculation. For national postal services handling millions of low-value items daily, this is a logistical earthquake.

What Are They Doing?

• Suspensions and Pauses

  • Postal operators in Europe (Germany, Denmark, Sweden, Belgium, France, Italy, and the UK) and the Asia-Pacific region (India, Thailand, Singapore, New Zealand, and Australia) have temporarily halted parcel shipments to the U.S. (The Washington Post). Letters and very low-value gifts may still move — but regular e-commerce orders? Stuck.

• System Upgrades in Progress

  • Posts are rushing to upgrade IT systems, train staff, and integrate prepayment options for duties. This requires coordination with U.S. Customs and USPS, which are also racing to scale up their processing capacity.

• Creating Delivered Duty Paid (DDP) Options

  • Most postal networks currently operate on a DDU (Delivered Duty Unpaid) basis, meaning the buyer pays duties upon delivery. The new reality demands DDP, where sellers prepay duties upfront. Until that’s ready, many posts simply can’t guarantee smooth delivery.

Why the Hold-Up?

The U.S. Customs and USPS now face the task of processing millions of small-value parcels individually. A job for which their systems were never designed. Without automation, backlogs and inconsistent handling are inevitable.

This complexity is why postal operators are playing it safe: they’d rather pause shipments than face chaos at customs and a flood of returns.

Platforms Like Etsy Are Adjusting

It’s not just national postal services making changes. Marketplaces are also responding to protect sellers and buyers:

• Etsy announced that, starting August 25, it will suspend U.S. shipping labels for Royal Mail, Australia Post, Canada Post, and Evri, as these carriers don’t yet support DDP.

• Sellers are being told to use carriers like UPS or FedEx, which can calculate and collect duties upfront. These services are pricier — but for now, they’re the only way to guarantee delivery without surprises at the doorstep.

What About Amazon Sellers?

Amazon sellers are also affected — but the impact depends on the fulfilment method:

Fulfilment by Amazon (FBA)

• If you use FBA and store stock in U.S. warehouses, Amazon manages customs clearance and duties for bulk imports. Your customer orders remain unaffected.

• However, sending inventory into U.S. fulfilment centres will now cost more, as duties apply at the point of entry. Sellers must factor this into margins and pricing.

Merchant-Fulfilled & Seller-Fulfilled Prime

• If you ship directly to U.S. customers from outside the country, you face the same challenges as Etsy sellers:

  • DDP is essential to prevent customers from being hit with surprise duties.

  • Postal carriers without DDP support may result in delays or returns.

• Amazon does not absorb duties on merchant-fulfilled orders, meaning sellers must manage compliance themselves.

Why the Timing Hurts Even More

This disruption couldn’t have come at a worse moment. The weeks leading up to Christmas are critical for sellers. It’s when many businesses make the bulk of their yearly revenue. Buyers start ordering gifts earlier every year, expecting fast, reliable delivery.

Now? Instead of gearing up for the busiest season, sellers are scrambling to:

• Recalculate shipping costs.

• Find new carriers.

• Update customers about possible delays.

And customers? Many are frustrated, confused, and even unaware of the new tariffs. I’ve already received multiple messages from US buyers asking, “Where is my parcel?” due to customs and delivery delays.

What This Means for Sellers and Buyers

• Delivery Delays: Until systems stabilise, expect inconsistent processing and slower transit times.

• Higher Costs: DDP carriers like UPS and FedEx are more expensive, but currently the safest bet.

• Temporary Market Disruptions: Some businesses will pause U.S. shipping altogether rather than risk negative reviews or returns.

Can This Settle Quickly?

Unlikely. Most global postal services are built on legacy systems and processes; they don’t turn on a dime. Reprogramming global networks to calculate duties on millions of small parcels is no small task. Add to that the question of whether U.S. Customs and USPS can scale fast enough to handle the surge in formal entries, and it’s clear this won’t be resolved overnight.

What needs to happen?

• Automation for customs clearance to prevent bottlenecks.

• Seamless DDP integration across carriers and marketplaces.

• Transparent buyer education so customers understand costs and timelines.

Until then, expect delays, inconsistency, and frustration on both sides of the transaction.

Global Postal Services: The Bigger Picture

The U.S. policy shift aimed to rein in cheap, mass-market imports. Instead, it’s rippling through every level of global commerce, from household-name platforms to independent makers and niche sellers.

While large companies can pivot more quickly, small businesses and artisans face an uphill battle. For now, the best strategy is clear communication, flexible shipping options, and staying informed as carriers introduce new solutions.