European Postal Services Suspend Shipment of Packages to US over Import Tariffs

22 May 2024, Saxony, Schkeuditz: The logo of DHL is seen on a package in Saxony's DHL Hub. (dpa)
22 May 2024, Saxony, Schkeuditz: The logo of DHL is seen on a package in Saxony's DHL Hub. (dpa)
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European Postal Services Suspend Shipment of Packages to US over Import Tariffs

22 May 2024, Saxony, Schkeuditz: The logo of DHL is seen on a package in Saxony's DHL Hub. (dpa)
22 May 2024, Saxony, Schkeuditz: The logo of DHL is seen on a package in Saxony's DHL Hub. (dpa)

The end of an exemption on tariff duties for low-value packages coming into the United States is causing a wide array of postal services to pause shipping as they await for more clarity on the rule.

The exemption, known as the “de minimis” exemption, allows packages worth less than $800 to come into the US duty free. A total of 1.36 billion packages were sent in 2024 under this exemption, for goods worth $64.6 billion, according to data from the US Customs and Border Patrol Agency.

It is set to expire next Friday. On Saturday, multiple postal services around Europe announced that they are suspending the shipment of many packages to the United States amid a lack of clarity over new import duties.

Postal services in Germany, Denmark, Sweden and Italy said they will stop shipping most merchandise to the US effective immediately. France and Austria will follow Monday, and the United Kingdom Tuesday.

“Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the US Customs and Border Protection will be carried out,” DHL, the largest shipping provider in Europe, said in a statement.

The company said starting Saturday it will “will no longer be able to accept and transport parcels and postal items containing goods from business customers destined for the US.”

A trade framework agreed on by the US and the European Union last month set a 15% tariff on the vast majority of products shipped from the EU. Packages under $800 will now also be subject to the tariff.

Many other European postal services say they are pausing deliveries now because they cannot guarantee the goods will enter the US before Aug. 29. They cite ambiguity about what kind of goods are covered by the new rules, and the lack of time to process their implications.

Postnord, the Nordic logistics company, and Italy's postal service announced similar suspensions effective Saturday.

“In the absence of different instructions from US authorities ... Poste Italiane will be forced, like other European postal operators, to temporarily suspend acceptance of all shipments containing goods destined for the United States, starting August 23. Mail shipments not containing merchandise will continue to be accepted,” Poste Italiane said Friday.

Shipping by services such as DHL Express remains possible, it added.

Björn Bergman, head of PostNord’s Group Brand and Communication, said the pause was “unfortunate but necessary to ensure full compliance of the newly implemented rules.”

In the Netherlands, PostNL spokesperson Wout Witteveen said the Trump administration is pressing ahead with the new duties despite US authorities lacking a system to collect them. He said that PostNL is working closely with its US counterparts to find a solution.

“If you have something to send to America, you should do it today,” Witteveen told The Associated Press.

Austrian Post, Austria’s leading logistics and postal service provider, stated that the last acceptance of commercial shipments to the US, including Puerto Rico, will take place Tuesday.

France's national postal service, La Poste, said the US did not provide full details or allow enough time for the French postal service to prepare for new customs procedures.

″Despite discussions with US customs services, no time was provided to postal operators to re-organize and assure the necessary computer updates to conform to the new rules,″ it said in a statement.

The UK’s Royal Mail said it would halt US shipments on Tuesday “to allow time for those packages to arrive before duties kick in.” Items originating in the UK will require a 10% duty for items over $100, it said.

PostEurop, an association of 51 European public postal operators, said that if no solution can be found by Aug. 29 all its members will likely follow suit.



UK Economy Shows Unexpected Growth of 0.3% in March

Union flags flutter in the breeze close to the Victoria Tower and Palace of Westminster, home to the two houses of Parliament, after the State Opening of Parliament in London on May 13, 2026. (Photo by Adrian DENNIS / AFP)
Union flags flutter in the breeze close to the Victoria Tower and Palace of Westminster, home to the two houses of Parliament, after the State Opening of Parliament in London on May 13, 2026. (Photo by Adrian DENNIS / AFP)
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UK Economy Shows Unexpected Growth of 0.3% in March

Union flags flutter in the breeze close to the Victoria Tower and Palace of Westminster, home to the two houses of Parliament, after the State Opening of Parliament in London on May 13, 2026. (Photo by Adrian DENNIS / AFP)
Union flags flutter in the breeze close to the Victoria Tower and Palace of Westminster, home to the two houses of Parliament, after the State Opening of Parliament in London on May 13, 2026. (Photo by Adrian DENNIS / AFP)

Britain's economy expanded unexpectedly in March to cap another strong first quarter, suggesting the economy was in slightly better shape as the Iran war escalated than many feared, official data showed on Thursday.

Gross domestic product increased by 0.3% month-on-month in March, the Office for National Statistics (ONS) said, against expectations in a Reuters poll of economists for a 0.2% contraction.

The ⁠services sector, construction ⁠output and manufacturing all grew strongly.

"Many will be unconvinced that this momentum can be sustained throughout this year," said Scott Gardner, investment strategist at J.P. Morgan Personal Investing.

"The risk is that ⁠the energy price spike following the start of the Iran conflict will persist and lead to a rebound in inflation."

Recent business surveys point to a rapid increase in cost pressures that is likely to weigh on corporate activity.

For the first quarter as a whole, the economy expanded by 0.6% - marking the third year ⁠running ⁠of conspicuously strong growth in the first quarter.

The ONS on Thursday published a blog that acknowledged there may be post-pandemic shifts in the timing of spending in the economy, and nudged down its readings for the first quarters of 2024 and 2025.

Finance minister Rachel Reeves said the data showed she had the right economic plan.


SoftBank Profit More Than Triples on OpenAI Stake Gains

A man walks past a Softbank branch in Tokyo on May 13, 2026. (Photo by Andrew CABALLERO-REYNOLDS / AFP)
A man walks past a Softbank branch in Tokyo on May 13, 2026. (Photo by Andrew CABALLERO-REYNOLDS / AFP)
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SoftBank Profit More Than Triples on OpenAI Stake Gains

A man walks past a Softbank branch in Tokyo on May 13, 2026. (Photo by Andrew CABALLERO-REYNOLDS / AFP)
A man walks past a Softbank branch in Tokyo on May 13, 2026. (Photo by Andrew CABALLERO-REYNOLDS / AFP)

Technology investor SoftBank Group reported on Wednesday that its net profit more than tripled to 1.83 trillion yen ($11.60 billion) in the January-March quarter, as it booked gains on the value of its investment in ChatGPT-maker OpenAI.

It was SoftBank's fifth consecutive quarterly profit, with the Vision Fund investing arm booking an OpenAI-driven gain of 3.1 trillion yen in the quarter, according to Reuters.

Founder and CEO Masayoshi Son is one of OpenAI's most enthusiastic backers, with the group saying its cumulative gains on the investment total $45 billion.

SoftBank has sold off stakes in holdings such as T-Mobile and Nvidia, issued bonds and taken out loans, backed by its holdings in chip designer Arm and its domestic telecommunications arm SoftBank Corp.

SoftBank arranged ⁠a bridge loan agreement totaling $40 billion in March.

On Wednesday, it said $20 billion was drawn down in April, primarily for the OpenAI investment, and $2.5 billion had already been repaid.

SoftBank had previously said it had agreed to invest a further $30 billion in OpenAI over the course of 2026, which would bring its cumulative investment to $64.6 billion for a 13% stake.

Beyond OpenAI, the group booked a 278.6 billion yen gain on its investment in chipmaker Intel, which is led by former SoftBank board member Lip-Bu Tan.

SoftBank has ⁠also sought to build a portfolio of robotics firms, looking to gain a foothold in an industry that is in its infancy but is seen by analysts and investors as having potential to drive profits into the future.

It agreed to acquire the robotics business of Swiss engineering group ABB in a $5.4 ⁠billion deal last year, and created a new subsidiary within the group to hold its robotics-related stakes.


Iran War and Oil Dominate BRICS Meet in India

India's Foreign Minister Subrahmanyam Jaishankar (R) speaks to Iranian counterpart Abbas Araghchi at the opening of the BRICS Foreign Ministers’ Meeting in New Delhi. Arun SANKAR / AFP
India's Foreign Minister Subrahmanyam Jaishankar (R) speaks to Iranian counterpart Abbas Araghchi at the opening of the BRICS Foreign Ministers’ Meeting in New Delhi. Arun SANKAR / AFP
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Iran War and Oil Dominate BRICS Meet in India

India's Foreign Minister Subrahmanyam Jaishankar (R) speaks to Iranian counterpart Abbas Araghchi at the opening of the BRICS Foreign Ministers’ Meeting in New Delhi. Arun SANKAR / AFP
India's Foreign Minister Subrahmanyam Jaishankar (R) speaks to Iranian counterpart Abbas Araghchi at the opening of the BRICS Foreign Ministers’ Meeting in New Delhi. Arun SANKAR / AFP

BRICS foreign ministers, including from Iran and Russia, met in New Delhi on Thursday, where India warned of "considerable flux" with conflict driving economic uncertainty and energy insecurity.

War in Iran and the related fuel crisis are dominating discussions in the two-day gathering, said AFP.

India, which holds the BRICS chair this year, was hosting the foreign ministers from the expanded bloc, which now includes Iran, Saudi Arabia and the United Arab Emirates.

"We meet at a time of considerable flux in international relations," India's Foreign Minister Subrahmanyam Jaishankar said, in his opening speech, before closed meetings began.

Among the foreign ministers attending were Iran's Abbas Araghchi and Russia's Sergei Lavrov.

"Ongoing conflicts, economic uncertainties, and challenges in trade, technology, and climate are shaping the global landscape," Jaishankar added.

"There is a growing expectation, particularly from emerging markets and developing countries, that BRICS will play a constructive and stabilizing role."

Disruptions around Gulf shipping routes and the Strait of Hormuz continue to drive volatility in oil and gas markets, increasing pressure on energy-importing economies, including India.

"Development issues remain central," Jaishankar added. "Many countries continue to face challenges on energy, food, fertilizer and health security, as well as also access to finance."

- 'Volatile global environment' -

The conflict involving Iran has added strain to India's economy, heavily reliant on Middle Eastern energy supplies and fertilizer imports, and has cast uncertainty over New Delhi's growth outlook.

India, the world's third-largest oil buyer, normally sources about half of its crude through the Strait of Hormuz, a vital waterway that has been repeatedly blocked since war began.

Ship tracking and import data show that India has partially plugged the gap by turning to old allies, expanding promising ties and reviving suppliers it had not tapped in years.

The biggest backstop has been Russian crude -- a fuel source New Delhi spent much of the past year trying to pivot away from under stiff US tariffs.

Jaishankar met with Lavrov on Wednesday evening.

"Our political cooperation is even more valuable in an uncertain and volatile global environment," Jaishankar said in remarks at the meeting, adding that discussions included "trade and investment, energy and connectivity".

BRICS was created in 2009 as a forum for major emerging economies seeking greater influence in institutions dominated by Western powers.

The grouping, originally comprising Brazil, Russia, India, China and South Africa, has since expanded, as members sought to boost the bloc's global political and economic influence.

It now includes Egypt, Ethiopia, Iran, Saudi Arabia, Indonesia and the United Arab Emirates.

China's Foreign Minister Wang Yi was not attending -- with US President Donald Trump in Beijing on Thursday.

India will hold a leaders' summit later this year, and the foreign ministers will also meet with Prime Minister Narendra Modi, the foreign ministry said.

With deep divisions among some members, including over the Middle East war and criticism of Western powers, it was not clear whether a joint statement would be released at the meeting's end.

"We will let you know as things progress," India's foreign ministry spokesman Randhir Jaiswal told reporters.