NZ Post Halts Deliveries to US Amid New Tariff Changes

New Zealand Post has suspended deliveries to the United States and its territories, including American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the US Virgin Islands. This decision comes as the postal service adapts to new tariffs imposed by the US government, which have created significant operational challenges.

According to NZ Post’s official website, the suspension affects multiple services, including economy, economy tracked, economy plus, courier, and express options. The only services still operational are sending letters via economy letters and documents through express. As of August 29, 2023, any items sent or currently in transit will be subject to the new tariffs, regardless of their value.

NZ Post expressed appreciation for customer patience during this transition, stating, “We appreciate your patience while we adapt to these changes. We’ll continue to keep this page updated as we learn more.” While the postal service anticipates that the suspension will be short-term, it has not provided a specific timeline for when services might resume.

New Zealand faced a 15% base rate tariff starting this month, an increase from the previously announced 10%. These tariffs were first announced by former President Donald Trump in April, with intentions of imposing them on more than 125 countries. Tariffs act as taxes paid by importers when bringing foreign products into their own countries, effectively raising prices for local consumers. Supporters argue that they safeguard local economies, while critics contend they hinder trade and inflate costs for consumers.

In a notable moment during the initial announcement in April, Trump displayed a chart claiming that New Zealand charged US goods a 20% tariff. The New Zealand government quickly refuted this, clarifying that the actual tariff was 10%, which Willis, a government representative, referred to as “extraordinary.”

Prime Minister Christopher Luxon has indicated that New Zealand will not retaliate with similar measures. A survey conducted earlier this year revealed that two-thirds of Kiwi businesses believe the tariffs will have a more adverse global impact than the COVID-19 pandemic and the global financial crisis over the next year.

As the situation develops, NZ Post is expected to provide updates regarding the resumption of services and any further implications of the new tariff regime.