Discovery

DHL suspends global shipments over tariffs

DHL Express has announced that it will suspends global shipments worth more than $800 to individuals in the United States over significant increase in red tape at customs, following the introduction of Donald Trump’s new tariff regime.

The delivery giant said shipments from companies in all countries to American customers will stop temporarily on Monday till further notice. However shipments under $800 to either businesses or consumers were not affected by the changes.

Dhl suspends global shipments

DHL added that business-to-business shipments would not be suspended but could face delays.

The company blamed the halt on the new US customs rules which require formal entry processing on all shipments that is worth over $800. Previously the minimum worth had been $2,500 until a change on April 5.

DHL said last week in response to Reuters questions that it would continue to process shipments from Hong Kong to the United States in accordance with the applicable customs rules and regulations and would work with customers to help them understand and adapt to the changes that are planned for May 2.

US tariff effect on exported goods

The White House is set to clamp down on deliveries under $800 on  May 2 when it closes a loophole allowing low-value packages to enter the US without incurring any duties specifically for deliveries sent from China and Hong Kong.

Under an executive order, the White House said the measures were aimed at addressing the synthetic opioid supply chain which it said play a significant role in the synthetic opioid crisis in the US.

The White House action planned for May 2 will impact the low-cost retail giant companies like the fast-fashion firm Shein and Temu.

Shein and Temu have both announced their probability of increasing prices due to recent changes in global trade rules and tariffs.

The Trump administration has claimed that many shippers in China hide illicit substances and conceal the true contents of shipments sent to the US through deceptive shipping practices.

Beijing has said that the opioid fentanyl is a US problem and China has the strictest drug policies in the world.

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