South Africa reacts to commercial barriers imposed by the USA

South Africa suspends sending orders to the US after revocation of tariff exemption by Trump

South Africa Mail announced on Friday the temporary suspension of some remittances to the United States, in response to the revocation by President Donald Trump of tax-free access to international orders. The measure affects the US exclusively for goods, while documents, letters and special correspondence, such as military correspondence, will continue to be accepted normally.

In an official statement, the South African state postcard justified the decision: “Given the complex processes required to comply with the new regulation, we have no other option than temporarily suspending these shipments. We regret any inconvenience it can cause to our customers.” The suspension occurs indefinitely, reflecting the need for adaptation to the new rules imposed by the US government.

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The tariff exemption, known as “minimis”It allowed American consumers to buy outdoor products in small quantities without paying taxes. The rule was gradually eliminated: In May, revocation affected packages from China, and last month a presidential decree extended the measure to the rest of the world. Washington’s declared goal is to prevent illegal drugs from entering the Fentanil in the US territory.

South Africa’s announcement follows similar decisions of other international postal services. Japan, Britain, and Australia have also temporarily suspended or adjusted their remittances to the United States due to the new rules, demonstrating the global impact of American policy on e-commerce and international logistics.

For the post office of South Africa, the measure arrives at a delicate time. The state -owned company has been in the process of judicial recovery since 2023, facing years of decline in the volume of correspondence, accumulation of debts and operational challenges that compromised its efficiency. Experts point out that the suspension of services to one of the largest consumer markets in the world should aggravate financial pressure and logistics about the company, requiring rapid adjustments in their internal processes.

In addition to the economic impact, the decision also directly affects consumers and small companies that depend on international shipments to export products or keep trading with customers in the United States. Small merchants, in particular, should face additional delays and costs while the rules are not fully assimilated by South African postal companies.

The episode also highlights the reach of US tariff policies in global trade. Small changes in US regulation can trigger a number of chain effects, from postal services to adaptation of international supply chains. For South Africa, temporary suspension represents an effort of containment in the face of a complex regulatory scenario, while reinforcing the vulnerability of essential services in a context of prolonged financial and administrative challenges.

End of the US Minimis exemption has an impact on prices, shipments and supply chains

The closing of treatment exempt from “minimi” commodities in the United States, announced by former President Donald Trump, has repercussions that go far beyond the customs universe. Latin expression – which means “too small to make a difference” – designated low -value packages sent directly to US consumers, free of taxes and complex customs statements. This policy had been in force for almost 90 years and benefited millions of packages that arrived in the US daily, including clothes, toys and electronics sold by international marketplaces.

Before the changes, platforms like Shein Group Ltd. e Ago They exploited the exemption to offer products at extremely competitive prices. With the revocation of the rule for mainland and Hong Kong packages on May 2, followed by the suspension to the rest of the world on August 29, US consumers face higher prices and longer delivery times. Postal operators in various countries, concerned with the lack of clarity on the collection of new tariffs, have temporarily suspended shipping to the US.

What the minimis exemption in the US meant

To qualify, a package needed to have retail value from up to US$ 800very high limit compared to other countries. In Canada, for example, the ceiling is $ 109 for orders from the US and Mexico, and only $ 15 for items from other countries; In the European Union, the limit is $ 175. China, in turn, exempted packages of up to about $ 7.

The US exemption dates back to 1938, when Congress sought to eliminate taxes on low value items to avoid unnecessary expenses. Since then, the ceiling went from $ 1 to $ 5 in 1990, then to $ 200 in 1993 and finally to $ 800 in 2016, during the presidency of Barack Obama.

Consequences for consumers and companies

The end of the exemption does not prevent purchases from abroad, but means that all packages will pass the customs and will be subject to tariffs. Sellers can absorb the additional cost or pass it on to consumers, increasing the prices of imported products. Even before the implementation of tariffs, companies such as Shein and feared raised the value of various items by up to 20%, while South Korean retailers, such as Olive Young, began to charge an additional 15% on requests in the US.

The impact is particularly heavy for low -income families. An analysis of National Bureau of Economic Research It indicates that almost 75% of shipments received by poorer CEPs in the US were minimis packages, compared to 52% of the richest zip code.

Effects on the supply chain

Carriers from countries such as Australia, Singapore and Norway have temporarily suspended shipping to the US, facing questions about how tariffs would be applied and what information would be required in customs statements. Packages now need to detail not only the value, but also the content, a country of shipping and the country of manufacturing of goods – a significant increase in bureaucracy.

Increased costs can make air transport unfeasible for low value products. Packages that previously arrived in a few days per plane can now take up to three weeks on container ships, affecting e-commerce and rapid delivery of small orders.

Who will be most affected

The end of exemption especially harms low -cost online retailers, such as Shein, Ago e AliExpressin addition to small American companies that import lots below $ 800 to avoid tariffs. Also impacts the so -called dropshippers and international salespeople on platforms like eBay e Etsy.

In addition, the effect spreads to other global markets. Countries such as the United Kingdom are studying to review their own exemption rules for low value products, concerned about competition and pressure on national producers.

Evolution of Minimis rules

A few days after assuming, Trump had already suspended the exemption for China packages, although he temporarily postponed while the US Post Office evaluated how to implement it. On May 2, the suspension was replayed, applying a rate equivalent to 120% of the package value or a fixed rate of US $ 100. Subsequently, trade agreements reduced some rates to 54%, maintaining the value fixed.

On July 30, Trump announced that the exemption would end for packages in any country, keeping only items of less than $ 100 without fee. Now, each package is taxed in two ways: either the importer pays a percentage of the order value, according to tariffs already applied to imports, or opts for a fixed fee of $ 80 to $ 200 during the first six months of politics.

The range of impact

In the US, approximately 4 million minimi packages arrived daily In 2024, many of them without prior inspection. These packages increased access to cheap products, but also overloaded supply chains, raised air freight costs and made it difficult for borders. Some of these packages have served to smuggle drugs, such as Fentanil, and other prohibited products, partly justifying Trump’s decision.

In terms of commerce, minimis packages grew exponentially: from 134 million in the previous decade to almost 1.4 billion in 2024. China, the largest exporter of small packages, declared $ 23 billion in shipments, although private estimates point up to $ 46 billion. Despite this volume, it still represents a small portion of the total American imports, which totaled more than US $ 3.2 trillion Last year, and significant impact on the general economy of the US is expected.

With information from Bloomberg*