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Australia: End of US tariff exemption causes chaos for Australian online retailers

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The end of a long-standing U.S. tariff exemption for some package shipments is causing chaos for small online retailers around the world, including Australia. The sudden added costs have prompted dozens of postal services and many small retailers to suspend shipments to the U.S. Australian businesswoman Tasha Miller owns a company named Jubly-Umph, selling items including socks, stickers, and pins. For her, sending goods to customers overseas has become increasingly difficult, and recently, more expensive, due to the Trump administration's move last month that ended tariff exemptions for package shipments valued under 800 U.S. dollars. The administration has said the exemption, which reportedly made up more than 90 percent of all cargo entering the country, was being abused to smuggle illegal goods including drugs into the U.S. At first, Australia Post was unequipped to collect the new tariffs upfront and chose to suspend that service, leaving Miller and many other small online retailers here without any affordable options. "I'd actually made the call about a week before that to stop, because it just looked like it was going to be chaos," said Miller. Australia Post has recently announced plans to lift its suspension after finding a third party provider to handle the new U.S. customs rules. However, businesses will still have to pay more to ship goods to the U.S. That has forced Miller to abandon plans to expand her business in the United States and search for other markets where she hopes her products will resonate with consumers. Miller added that navigating U.S. tariffs has been confusing and frustrating. In addition to the 10 percent baseline tariff the U.S. imposed on Australian imports, all of Jubly-Umph's goods are manufactured in China, which Miller said are subject to an additional 55 percent tariff. "Every week could be something different and it's just been very hard to sort of figure out which way we should go with it because it's going to be expensive each way - there's no way for us not to raise prices at some point," she said. The postal ban is not unique to Australia. Nearly 90 postal operators worldwide have suspended some or all of their services to the U.S. As a result, the impact to U.S.-bound shipments has been dramatic, falling by nearly 80 percent after the announcement was made. "Decisions have been made based on the assumption that you can ship to the United States. Decisions have been made on the assumption that you can access the American market, so all of this is having potentially an impact globally in small retailers all over the world," said Rodrigo Praino, a professor at Flinders University in Adelaide, Australia. SHOTLIST: Daylesford, Victoria, Australia - Recent 1. Various of shop owner Tasha Miller, products; 2. SOUNDBITE (English) Tasha Miller, shop owner: "I'd actually made the call about a week before that to stop, because it just looked like it was going to be chaos."; 3. Various of Miller in her shop; 4. SOUNDBITE (English) Tasha Miller, shop owner (starting with shot 3): "Every week could be something different and it's just been very hard to sort of figure out which way we should go with it because it's going to be expensive each way - there's no way for us not to raise prices at some point."; Australia - Recent 5. Various of sign reading "post", parcel locker; Adelaide, Australia - Recent 6. SOUNDBITE (English) Rodrigo Praino, professor, Flinders University: "Decisions have been made based on the assumption that you can ship to the United States. Decisions have been made on the assumption that you can access the American market, so all of this is having potentially an impact globally in small retailers all over the world."; Australia - Recent 7. Various of sign reading "post", parcel locker, signs. [Restrictions: No access Chinese mainland]

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