Post Office partially suspends courier services to US amid tariff hike

Experts warn the Post Office's suspension of US parcel shipments could deepen losses and weaken its competitiveness against private couriers.

The SA Post Office (Sapo) has partially suspended its courier business to the US as new tariffs announced by President Donald Trump take effect.

The Witness reports that parcels shipped to the US were previously exempted from the duties.

According to the US government, the duties are both a security measure and a revenue-generation instrument.

Countries affected

Apart from South Africa, countries facing the parcel levy include Nigeria, France, Spain, Germany and the UK.

While Nigeria opted to pass the levy on to senders, the SA Post Office resolved to suspend the shipping of parcels to the US.

“Given the complex processes required to comply with the new regulation, we have no choice but to temporarily suspend these shipments. We regret any inconvenience this may cause to our customers,” Sapo said.

Impact on consumers and exporters

The US parcel levy means South African consumers buying goods from US online retailers, as well as small exporters who choose to ship to American customers, will have to contend with higher costs and longer clearance delays.

Sapo said that documents, letters and exempted mail classes such as military mail will still be couriered to the US.

The partial suspension of the service will add to the financial strain of the embattled state-owned entity.

Industry observers warn the move could reduce volumes, cut revenues and undermine recovery efforts.

Struggling entity in business rescue

In July, the company entered business rescue to avoid liquidation after years of mounting losses, mismanagement and declining customer confidence.

International mail services have been one of the few remaining revenue streams, boosted largely by the growth of e-commerce.

But analysts now fear the US parcel duty will make Sapo’s offerings less competitive compared to private couriers, who are able to clear goods faster and offer customers discounts.

Expert view

According to logistics expert Professor Johan Steyn from the University of Pretoria, the development highlights Sapo’s structural vulnerabilities.

“The post office relies heavily on international parcel traffic for survival, but duties of this kind make it less attractive to both importers and exporters. Without diversifying its services and improving efficiency, Sapo risks losing relevance in global trade.”


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Clive Ndou

Clive Ndou has vast experience in the media having covered beats ranging from politics to economics. Ndou, who studied journalism at the Durban University of Technology (DUT), held several positions within the media industry, including that of Parliamentary Correspondent and KwaZulu-Natal Bureau Chief. Apart from reporting on breaking news, Ndou who is currently The Witness Politics Editor, also writes analytical pieces and a column published in The Witness every Thursday.
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