Thai postal service halts parcel shipments to US as end of tariff exemption looms for low-value goods

BANGKOK - Thailand Post has halted parcel services to the US after US President Donald Trump ended the de minimis tax exemption, disrupting millions of global shipments.

Acting president of Thailand Post Thapanee Amarinrat signed an announcement on Aug 21 confirming the temporary suspension of all international postal parcel services to the United States.

The move follows the executive order issued by Mr Trump on July 30

ending the de minimis tax exemption

for all countries. The measure, set to take effect on Aug 29, has already prompted Thailand Post’s international logistics partners to halt acceptance of all categories of postal items bound for the US from Aug 22 until further notice.

Customers can still use Courier Post services and shipments to Amazon FBA warehouses.

The halt underscores the sweeping disruption caused by Mr Trump’s decision to eliminate the de minimis threshold, which previously allowed low-value parcels to enter the US without customs duties. The exemption, capped at US$800 (S$1,000) per person per day, facilitated millions of small packages from around the world entering the country smoothly.

Now, postal services, online sellers, consumers and logistics companies are grappling with costly and complex compliance procedures, amid limited guidance from US federal agencies.

Global parcel operators have begun suspending shipments to the US in anticipation of the policy shift, which is expected to impact more than four million packages processed daily by US Customs and Border Protection. THE NATION/ASIA NEWS NETWORK