South Korea suspends parcel deliveries to U.S. amid end of duty-free rule

South Korea has suspended parcel deliveries to the U.S. as Trump's order to end a global tariff exemption for low-cost goods weighs on the country's cross border e-commerce sector.

Effective on Aug. 29, the order rules that imported goods sent through means other than the international postal network that are valued at or under 800 U.S. dollars and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties.

Under the new rule, all incoming postal items — except letters and documents — must be declared and face a 15 percent tariff. At Gwanghwamun Post Office, one of Seoul's busiest postal service counters, a notice is prominently displayed, informing customers of the suspension of all normal parcel deliveries and non-document international express services to the U.S. due to U.S. tariff policy changes.

South Korean residents can still use EMS (Express Mail Service) or private courier companies to send deliveries, which are able to handle customs clearance. However, for parcels each weighing less than 4.5 kg, EMS charges are up to 20 percent higher than regular international express services. Coupled with the 15-percent tariff on small-value parcels, many households are facing higher costs.

"My cousin studies in the U.S. and I send him daily essentials via EMS once a month. This month, the cost is much higher than last month. It's a heavy burden." said a resident in Seoul.

Korea Post said it is working with U.S.-approved customs duty firms and aims to restore services close to previous levels within two months. However, for South Korea's cross-border e-commerce sector targeting the U.S. market, the impact may be long-lasting.

Two major Korean beauty e-commerce platforms and a large fashion retailer have announced that a 15 percent tariff would be applied to purchases from U.S. consumers.

With their products typically priced at between 15 and 20 U.S. dollars apiece, some small and medium-sized cosmetics brands are hard to maintain competitiveness in the U.S. market. Moreover, small and medium-sized companies in South Korea are expected to be hit hard by the tariff policy as they have limited risk resilience and market resources compared with large companies.

South Korea suspends parcel deliveries to U.S. amid end of duty-free rule

South Korea suspends parcel deliveries to U.S. amid end of duty-free rule

China and Canada should work together to promote the stable, healthy and sustainable development of bilateral economic and trade relations, Chinese Vice Premier He Lifeng said in Beijing on Friday.

He, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks while attending the Canada-China Trade and Investment Banquet together with the visiting Canadian Prime Minister Mark Carney.

Speaking at the event, He said that under the strategic guidance of the important consensus reached by their leaders, China and Canada should adhere to the principles of mutual respect, peaceful coexistence, win-win cooperation, and mutual success, and jointly promote the stable, healthy, and sustainable development of bilateral economic and trade relations.

China is steadfastly expanding high-standard opening up, continuously developing new quality productive forces, and is willing to work with countries around the world, including Canada, to create new prospects for cooperation, said He.

Carney noted at the banquet that China is Canada's second-largest trading partner and said Canada looks forward to strengthening high-level exchanges with China, making full use of dialogue mechanisms in areas such as the economy and trade, and deepening cooperation in trade, agriculture, energy and other fields.

Carney arrived in Beijing on Wednesday to begin a four-day official visit to China, marking the first trip to the country by a Canadian prime minister in eight years.

China, Canada should work together for stable, healthy, sustainable economic ties: Vice Premier