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Trump’s tariff plan for global mail system hits 3000 Australian businesses

“I’m hopeful that, as a result of our representations, we can do something to ensure that our products, our great products, continue to get into the United States.”

Sydney-based business Mediband is one Australian firm caught up in the turmoil caused by the Trump government. It has been supplying medical ID bracelets since 2004. Its customers include Boston Children’s Hospital and LA County Hospital.

Trade Minister Don Farrell has talked to the US Trade Representative’s office about the issues caused by the change to tariff policy on small packages.Credit: Alex Ellinghausen

Managing director Michael Randall said the US accounted for about 30 per cent of his firm’s business, but he has had to shut down American sales while the issue is resolved.

This week, it removed the US from its online drop-down menu of nations to which it ships to stop American customers from continuing to order.

It has about 50 orders in train that it will honour, but until the issue is resolved it is unlikely to sell to the US.

Randall said the company’s American customers, many of whom were vulnerable patients, had been left without access to replacement or updated IDs that could be lifesaving if they collapsed, suffered a seizure or went into anaphylaxis.

“We accept the shift in US tariff policy. But the way this has been handled – suspending shipments without warning – means real people with serious conditions are suddenly left exposed,” he said.

The rush by postal agencies such as Britain’s Royal Mail and Germany’s Deutsche Post has put pressure on the only two IT companies licensed in the US to deal with the new tariff payment system.

Clint Reid, the head of Zonos, noted on social media this week the pressure on his company.

“From a member of our team in the Gold Coast: ‘I had to block time for toilet breaks and emails this week. I have to tell you the session I did for the e-com equation group. Over 150 brands on the call,’ ” he wrote.

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Trump’s opponent at the 2016 presidential election, Hillary Clinton, noted that countries including Australia, New Zealand, India, Germany, France and Spain had all paused sending packages to the US because of the administration’s “tariff chaos”.

“Did anyone vote in 2024 to become the new Hermit Kingdom?” she said on social media, referring to a term used to describe North Korea.

AMP chief economist Shane Oliver said the change to small package tariffs was small compared with Trump’s “Liberation Day” announcement and his recent introduction of tariffs of up to 50 per cent on key trading partners.

But the latest policy was just another problem that would confront small businesses and American customers who would end up paying the imposts.

“This is just another piece of sand thrown into the cogs of the global trading system, which is just going to slow it down,” he said.

Australian Chamber of Commerce and Industry chief executive officer Andrew McKellar said some of its members with substantial customer bases in the US had been directly affected.

“We have been assured that implementation of a solution is happening as quickly as possible,” he said.

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