DHL Freezes Shipments Worth Over $800 To US Consumers Amid Rising Trade Tensions

DHL Express, a unit of Germany's DHL, said it would temporarily suspend international business-to-consumer shipments valued over $800 to private individuals in the U.S. from April 21 due to problems with customs clearances.

The parcel delivery firm, however, assured that shipments to U.S. companies with a declarable value of above $800 are not affected by the temporary suspension, though they may also face delays.

The company said shipments worth less than $800 to consumers and businesses would not be affected.

DHL said it made these decisions after the U.S. announced that, effective April 5, packages worth more than the "de minimis" amount of $800 would require formal entry processing, compared to the earlier $2,500 limit.

Washington had also scrapped tariff-free trade provisions for shipments from China and Hong Kong after the Trump administration accused China of concealing "the true contents" of packages through "deceptive shipping practices."

Earlier this month, Hong Kong Post suspended mail services for goods sent by sea to the U.S. and accused the government of "bullying."

U.S. rival FedEx said earlier that it was prepared for operational challenges related to the "de minimis" rule, and its revenue is primarily driven by the business-to-business segment.

The iShares U.S. Transportation ETF (IYT), which tracks logistics firms alongside other sub-sectors, has fallen 12.5% year-to-date (YTD).

Also See: Multiple Boeing Planes Reportedly Sent Back To Seattle From China Amid Escalating Trade War, But Retail’s Bullish

For updates and corrections, email newsroom[at]stocktwits[dot]com.