Donald Trump has closed a long-standing tariff loophole, imposing new duties on all packages entering the US, regardless of their size or value.

As of August 29, the so-called de minimis rule, which had allowed goods valued under US$800 (approximately A$1,210) to enter duty-free, was no longer in effect.

It’s just the latest move in the president’s trade war, which has already driven US tariff levels to highs not seen in decades.

The White House argues the exemption was being abused.

Both by e-commerce giants like Shein and Temu, which ship direct from China, and by traffickers smuggling fentanyl into the country.

Trump adviser Peter Navarro claims the crackdown is essential to national security.

According to a fact sheet released by the White House, de minimis shipments increased from 134 million in 2015 to more than 1.3 billion in 2024.

Courier drivers could soon have less to smile about

The fallout from the change has been immediate.

Postal agencies in Germany and Singapore announced they would halt mail deliveries to the US, citing confusion over how tariffs would be collected.

One senior US official insisted that the government was working with the US Postal Service and foreign partners to minimise disruption.

However, they also noted that transhipment – that is, Chinese goods being routed through third countries – remained a concern.

Trump’s team has given shippers two choices.

They can pay the reciprocal tariff rate of the origin country or a temporary flat fee of US$80–US$200 per package. (The amount depends on the tariff applied to the nation it’s being sent from.)

Officials said the latter method, available only for six months, was designed as a stopgap while postal services build systems to properly log and collect duties.

Trump sceptics warn the tariffs will snarl global supply chains and hit American consumers with higher costs on everyday online orders.

Trump supporters counter that foreign post offices should get their act together.

Australia Post has temporarily halted most parcel deliveries to the US and Puerto Rico. The pause excludes letters, documents, and bona fide gifts under US$100 (A$150).