Shipping consolidator DHL announced that it will no longer ship packages valued over $800 to the United States beginning Monday.
While all imports less than $800 have always been duty-free, a new rule effective April 5 lowered the threshold for import declarations. Before, packages worth less than $2,500 did not need to be declared.
“This change has caused a surge in formal customs clearances, which we are handling around the clock,” DHL wrote in its notice. “While we are working diligently to scale up and manage this increase, shipments over USD 800—regardless of origin—may experience multi-day delays.”
It remains to be seen how long the suspension will last, as the company said it will be in place “until further notice.” The suspension does not apply to business-to-business shipments.
HONG KONG SUSPENDS POSTAL SERVICE TO US DUE TO TARIFFS AND ENDING OF TAX EXEMPTION
The announcement comes months after the U.S. Postal Service ended discounts for DHL. The Germany-based shipper was once able to drop off its packages at thousands of USPS locations, but the service has since limited drop-off locations to 500 large hubs and charges full price.
U.S. tariffs on foreign goods, largely slated to begin on July 9, have also prompted changes to the shipping industry. The United Kingdom floated a carbon tax on shipping while Hong Kong suspended shipping to the U.S. altogether. Hong Kong is a Special Administrative Region of China, which received a 145% tariff from the Trump administration that is in effect.