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US Ends Tax-Free Allowance on Parcels from Europe, Irish Businesses Brace for Impact

A long-standing exemption allowing parcels worth under $800 (€685) to be sent tax-free from Europe to the United States has ended today, with the new rules set to affect both consumers and businesses in Ireland.

Under the changes, only letters, documents, and gifts valued under $100 (€85) will remain exempt. Any package above that threshold will now be subject to a 15% tariff, payable before delivery.

The decision was communicated to postal operators, including An Post, around three weeks ago by the US administration. While postal services in Germany, Switzerland, Belgium, Austria, Denmark, Japan, South Korea, and Australia have suspended shipments to the US pending clarity, An Post has confirmed it will continue to operate its service.

Garrett Bridgeman, Managing Director of Mails and Parcels at An Post, said the company was prepared for the additional administrative burden, having gained experience from adapting to post-Brexit customs requirements. “Ninety-nine percent of the gifts that go to the United States are less than $100, so we don’t see a big problem here,” he noted. “The big problem is a lot of business customers in Ireland sell online into the United States, so all of their products sold online now are subject to new tariffs.”

An Post will collect the duty on behalf of the US government before dispatching parcels. Customers receiving items will be notified and given five days to pay the tariff; otherwise, the package will be returned to the sender.

For small businesses reliant on US sales, the changes present a significant challenge. Dublin’s Bohemian Football Club, known internationally for its charity-linked jerseys, has suspended sales to US customers until the situation becomes clearer. Chief Operating Officer Daniel Lambert said the US accounts for around 15% of the club’s sales. “If customs charges or requirements become too onerous, the logistics chain breaks down,” he warned.

Industry observers suggest the move is part of President Donald Trump’s “America First” strategy, aimed at protecting domestic businesses and limiting the flow of Chinese goods entering the US via Europe. However, the abrupt change has raised concerns that American consumers may face delays or higher costs for international goods.

Private couriers such as FedEx and UPS continue to deliver parcels from Europe to the US, but recipients will still be required to pay the new tariff. Analysts say it remains possible that Washington could revise the policy if opposition grows among US consumers frustrated by rising costs and disrupted deliveries.

With over one million letters and parcels sent from Ireland to the US each year, the tariff change is expected to hit exporters hardest, particularly small firms for whom American customers form a vital market.

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