Australia’s small business shipments are caught in the US-China trade war crossfire
Until this week, thousands of Australian small businesses that exported to the United States relied on a simple system that had worked for decades.
Parcels worth less than US$800 (A$1225) could enter the US tax-free under the “de minimis” rule for low-value goods. But from August 29, that exemption will be suspended and all US-bound parcels from Australia will be subject to the 10% tariff the US now applies to Australian exports.
Ahead of that change, Australia Post suspended shipments to the US while it works out how to collect this tariff upfront on behalf of US Customs.
Many European countries, India, Japan and other nations have also suspended parcel shipments to the US.
The disruption will hit hardest for Australia’s small and medium-sized businesses, which make up 93% of the nation’s exporters, according to Austrade. From winemakers to sustainable clothing outfits, small businesses selling directly to US consumers will undoubtedly........
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