Transatlantic Troubles: European Posts Hit Pause on US Deliveries Amid Tariff Tensions

A significant disruption has hit international commerce and personal parcel delivery, as several prominent European postal services announced the temporary suspension of small package deliveries to the United States. This unprecedented move comes in response to new US-imposed import custom duties and the complex, contentious changes to international mailing rates stemming from the Universal Postal Union (UPU) agreement.

The roots of this transatlantic postal standoff trace back to the Trump administration's stance on the UPU, a 145-year-old UN agency that sets global postal rates.

Citing what it deemed unfair rates that favored countries like China, the US had threatened to withdraw from the UPU. To avert this withdrawal, a compromise was reached in September 2019, allowing the US to self-declare its own terminal dues – the fees postal services pay each other to deliver international mail – starting July 2020, with an option to implement changes as early as October 2019.

This shift has effectively increased the cost for foreign postal operators to send packages into the United States.

For many European services, the new rates make it economically unfeasible to continue sending smaller parcels and letters without significantly hiking prices for their customers. The burden falls disproportionately on businesses, especially small and medium-sized e-commerce ventures, and individuals sending personal items, who now face either stalled deliveries or drastically increased shipping costs.

Among the first to react were Nordic postal giant PostNord, which serves Sweden and Denmark, and Finland's Posti, both announcing the suspension of sending small packages to the US.

Belgium's Bpost and Lithuania Post quickly followed suit, with Austria Post also warning customers of potential suspensions and increased costs. These actions highlight a unified concern across Europe regarding the viability of cross-border postal services under the new US-declared terms.

The suspensions primarily impact smaller, untracked packages and letters, which are typically used for inexpensive goods or personal correspondence.

While larger, tracked parcels often utilize alternative private courier services and are less affected, the volume of small e-commerce shipments makes this a critical blow to international trade, particularly for merchants relying on affordable shipping to reach US consumers.

As the postal services scramble for solutions and await further clarification on the evolving regulatory landscape, consumers and businesses are left in limbo.

The situation underscores the delicate balance of international agreements and the significant real-world impact when trade and postal policies clash, pushing operators to seek alternative, potentially more expensive or less efficient, delivery channels.