WASHINGTON - An approaching US deadline to end tariff exemptions on small parcels has tripped up global deliveries to the world's biggest economy, with some businesses halting shipments to American consumers and mulling price hikes.
Come Friday, President Donald Trump's administration is abolishing a rule that allows packages valued at $800 or below to enter the United States duty-free.
Instead, packages will either be subject to the tariff level applicable to their country of origin, or face a specific duty ranging from $80 to $200 per item.
Trump's trade adviser Peter Navarro told reporters that closing this "loophole" helps restrict the flow of "narcotics and other dangerous and prohibited items" while bringing fresh tariff revenues.
But the monthlong lead time Trump's order provided has sparked a frenzy.
Postal services, including in France, Germany, Italy, India, Australia and Japan, earlier said most US-bound packages would no longer be accepted.
The UK's Royal Mail, which took a similar step, announced new services Thursday for customers to continue sending goods to the United States.
On Tuesday, the United Nations' Universal Postal Union said 25 member countries' postal operators had suspended outbound postal services to the country.
"Foreign post offices need to get their act together when it comes to monitoring and policing the use of international mail for smuggling and tariff evasion purposes," Navarro added Thursday.
US officials maintain that just five percent of duty-free small package shipments arrived via the postal network, while most went through express couriers.
Yet, the impending change has brought confusion and concern to small businesses.