What’s the tax change for parcels being sent to the US?

The United States has ended a long-standing tax-free allowance on parcels arriving from Europe valued under $800 (€685), a change that takes effect today. From now on, only letters, documents, and small gift parcels worth under $100 (€85) will be exempt from tariffs. Any package sent from Ireland or elsewhere in Europe to the US above this threshold will be subject to a 15% duty.

What the New Rules Mean for Senders and Receivers

For ordinary people, this means that gifts or purchases mailed across the Atlantic will come with added costs. For instance, if someone in Ireland sends a €100 Aran jumper to a relative in the US, the recipient will need to pay €15 in tax before the package is released. Businesses will feel the impact even more sharply—every online purchase shipped by post to the US will now be taxed, regardless of value.

Each year, over one million letters and parcels are sent from Ireland to the US. While some European postal operators have suspended services to America while they assess the changes, An Post has confirmed it will continue to deliver, adapting its systems to the new requirements.

An Post’s Response and Preparedness

An Post has pointed out that it already has experience managing complex customs systems following Brexit. Managing Director of Mails and Parcels Garrett Bridgeman explained that while the vast majority of personal gifts to the US fall below the new €85 threshold, the bigger challenge lies with Irish businesses selling to American customers.

An Post will handle collection of the new duties. When a US-based customer makes an online purchase from Ireland, they will be contacted and given five days to pay the tariff before the item is shipped. If payment is not made, the parcel will be returned to the sender. Bridgeman urged Irish businesses to be upfront with their customers by clearly stating on their websites that US-bound orders are subject to tariffs.

Who Will Be Most Affected?

While personal gifts are unlikely to be heavily impacted, many Irish companies that rely on online sales to the US now face significant obstacles. Dublin’s Bohemian Football Club, known for designing football jerseys in partnership with charities, has suspended US sales entirely. The club’s COO Daniel Lambert said the United States accounts for about 15% of its annual sales, but until there is clarity on how the new system will operate, they cannot risk sending orders.

Lambert expressed concern that small-value items like jerseys could become burdened by high customs costs and technical complications: “If it’s too onerous in terms of customs charges or requirements at either end, that’s where the logistics chain breaks down.”

A Global Ripple Effect

The issue has spread beyond Ireland. Postal services in Germany, Switzerland, Belgium, Austria, Denmark, Japan, South Korea, and Australia have also suspended deliveries to the US for the time being. While private companies like FedEx and UPS continue to operate, recipients in the US will still have to pay the new tariffs.

Some believe the suspensions are temporary, as operators search for workable solutions. Others speculate that Washington might soften its stance under pressure if American consumers push back when overseas goods suddenly become more expensive or harder to receive.

Why Now?

The US administration has not given a formal explanation, but the move aligns with Donald Trump’s broader “America First” trade policy, aimed at protecting domestic businesses. It may also be a tactic to limit the volume of Chinese-made products entering the US indirectly via Europe.

In the meantime, Irish families and small businesses that rely on sending goods to the US face a new layer of cost and complexity, one that could reshape transatlantic trade and gift-giving for the foreseeable future.

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