August 23, 2025 • 11 mins
NZ Post has suspended most shipping services to the United States and some surrounding countries as they brace for tariffs to come into effect.
Services will stop on the 29th of August, but NZ Post says it can't give customers an exact date for when things will get going again.
They expect the suspension to be short term, but it begs the question of what planning was being done when tariff discussions have been ongoing for months.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks.
I'd be so.
Speaker 2 (00:10):
New Zealand's Post has suspended shipping services to the United
States and some surrounding areas as they brace for the
tariffs to come into effect. Services will stop on the
twenty ninth of August, but New Zealand Posts says it
can't give customers an exact date for when things will
get going again. They expect the suspension to be short term,
but does beg the question of what planning they were
(00:32):
doing while tariff discussions have been happening for months and
professor of Economics at the University of Otago, murat Angor
is with me now.
Speaker 3 (00:38):
Good afternoon, Tim, How are you today?
Speaker 2 (00:42):
Good things? So the last I mean, we've known these
tariffs have been coming.
Speaker 3 (00:48):
What's happened here? So here, I think the starting point
should be learning Latin because we are talking about their
minimis shipments. So their minimis is a LA's an expression
that means trivial or saw my or that something can
be disregarded. And in the context of international trade and
(01:10):
in the context of United States, the minimums exemption had
allowed goods valued eight eight hundred dollars or less to
enter the United States without paying any tarifs. In other words,
United States consumers relied on the exemption to buy cheap
clothes and household items from online commerce sites from China
(01:34):
and from all over the world. It first started with China,
so first United States put some titifs for the goods
coming from China and Hong Kong, and then now it's
spread to the rest of the world, including shipments coming
from New Zealand and from the rest of the world.
Because these shipments are extremely important, let me give you
(01:58):
some facts. So these the minimum shipments account for more
than ninety percent of all cargo entering to the United States,
and US Customs and Border Protection processes around like four
million day minimum shipments a day, four million, so basically
(02:19):
and there's no tariff on all those goods. In addition
to this, there are lots of discussions regarding to dangerous narcotics,
other illicit goods, including chemicals and the materials such as
prell presses and molds used to manufacturing fentennil and other
synthetic drugs. So basically, the United States wants to protect
(02:42):
their national security and also they want to increase revenue.
Tariff ravine because tariff is a tax on international trade,
and who collects the taxes government, So it's also another
source of the government rivening because all those shipments once Mohenotima,
it was only like one hundred and forty million shipments
in twenty fourteen, I believe, and right now it rose
(03:05):
to one billion shipments, more than one billion shipments. So
we are talking about a lot of small shipments entering
into the United States. So it started in nineteen thirty.
So in nineteen thirty United States with the Law of
Tariff Act, so they gave actually let people skip import
fees for small value shipments, and about more than one
(03:29):
hundred countries have that the minimus exemptions. That was all
good and in the context of I believe it was
Barack Obama. So at that time US level used to
be two hundred dollars, but it rose to eight hundred
dollars in twenty sixteen when Barack Obama signed the Trade
Facilitation and Trade Enforcement Act, and it was actually when
(03:52):
President Biden was in the government, they were actually talking
about this because it creates a lot of disadvantage stuation
for United States. Think about US versus China. Like Temo
and Shane, I counted for around twenty percent of the
US This can't market in twenty twenty three. This hurts
all the small and medium sized companies in the United States,
(04:15):
for example.
Speaker 2 (04:16):
Well I heard, I mean it's going to impact a
lot of small businesses across in New Zealand as well,
how badly. What's your impact do you think it's going
to have in New Zealand?
Speaker 3 (04:25):
Yes, because when you think about New Zealand, New Zealand
is a nation of small and medium sized enterprises. To
some numbers, it's more than ninety seven percent ninety eight percent,
So more or less, we're a country of small and
medium sized enterprises. And I know that a lot of
smaller and medium sized enterprises sell consumer goods, fast fashioned toys.
(04:49):
I was just reading the news at a radio and
z I believe someone who was selling barrets or heads
to the United States. He was complaining about this. So
if you think about all these small and small companies,
they are going to be hurt badly.
Speaker 2 (05:05):
So all shipments, regardless of value, unless you're sending a
postcard to Grandma. Basically, I'm gonna need to go through
this formal entry priceis is exactly there is this gonna last?
Because it's not only bad for US, but I think
it's going to be quite frustrating to tens of millions
of Americans, isn't it.
Speaker 3 (05:26):
This is also true. And also it is because when
we think about international logistics, so it is very, very
big industry. I'm reading press releases from the Hild group
from Germany or from the what is the French postal
service La Post I believe, and their counterpart in Spain.
So they are all complaining because key questions remain unsolved.
(05:50):
What are they so particularly regarding how and by whom
custom duties will be collected in the future, and what
additional data will be required, and how the data transmission
to the United States Customs and Border Protection will be
carried out. So the reason that all these post offices
(06:10):
and partial companies are pressing pause is not just removing
the exemptions, but all this ambiguity regarding the implementation of policy.
So I think this is the reason of all these
short run tells we are experiencing right now.
Speaker 2 (06:25):
Is there some sort of blame that gets sheeted home
into post on us or is it that they're just
dealing with an administration that doesn't know what it's doing.
Speaker 3 (06:35):
But I think it's not just unique problem to the
New Zealand. I think it's also a problem for the
other parts of the countries and as well as the
international partial companies. So we cannot put them into the
New Zealand because we live in the age of uncertainty,
so there are almost every single day there's one announcement
coming from Donald Trump and administration. So it is not
(06:56):
easy for businesses or for our government agencies to adjust
this new policies immediately, so it takes time and especially
go ahead.
Speaker 2 (07:06):
Go ahead, And that's the challenge because look, we knew
the tariffs were coming, right, But I guess the challenge
is because of what you're talking about, the deminimus. So
even though if you're going to have tariffs, is that
the real problem. So the tariffs are one thing, and
we can get ready for that, and there's a mechanism
for implementing that, But as soon as they change the
domino deminimus to basically genuinely nothing, that's exactly that's the
(07:29):
spanner and the works is that.
Speaker 3 (07:31):
So this is also a case and in the context
of UH Tarius. For example, New Zealand applies very small
title frids for the goods coming from United States, and
New Zealand's always having sometimes I believe trade surplus fits
and need United States. So with the title fits we
are effectively penalized. But I believe there will be a
(07:52):
lot of meetings, one in September, one in October in
international settings because yes, for New Zealand, China has emergency
the number one trading partner, replacing Australia and United States.
And in addition to China, because Chinese growth rate has
been slowing from like ten percent growth rates to five
percent growth rates, so people are talking about who is
(08:15):
going to be the next China. So we have Indonesia,
we have Vietnam, we have India. Maybe in some of
other times people have Bangladesh. So I think one day
to deal with all of these trade chaos is to
increase your trade relations, economic cooperation relations with the new
emerging giants from China, Vietnam, India, Indonesia. They have all
(08:38):
very high growth rates and if you increase our trade
with them, it will be benefit of menus.
Speaker 2 (08:43):
Meanwhile, for people who want to send stuffter the States,
how much of a past. Do we need to give
in zid Post on this? When should we expect this
to you know, how much of an excuse to insid
Post have and for how long?
Speaker 3 (08:54):
So first of all, I don't know the answer, but
I think first so I should be honesstand that. And secondly,
I think because the political enters are coming to force
on twenty ninth of August, and then I think probably
for the first month, so I think I shouldn't expect
any resolution until maybe October, and maybe after October you
(09:18):
can see a better pictures and maybe a new announcement
from New Zealand Postulations as well as the other partial
companies all around the world.
Speaker 2 (09:26):
Is the best solution to this is that someone in
the United States administration realizes that they need to you know,
that it can't be as strict as it is. We're
going to have to allow people to see in presents
for birthdays and stuff without are being held up with
this massive democracy.
Speaker 3 (09:41):
Yes, exactly so, because when we think about trade, because
Trump is a business person, right businessman, and his pro
business and then you come up with all these regulations,
then you are actually hurting business. But of course they
also have a lot of national security concerns, which are
completely understandable. Then we think about all these prohibited agricultural
(10:04):
products able to meet meat products, and unfortunately all these
illicit drugs entering into the United States. Same thing happening
for the newsuals. Right, we cannot just import agricultural products
or meat products from some other parts of it because
if there is a disease, then there will be a
contigious effect. Then our ecosystem will be hurt completely. So
that's why the United States is also a little bit
(10:26):
trying to improve their standards on this. But as I said,
so I'm talking about four million parsons per day they
are actually going over this. It's almost impossible to check
the content of everything, so that's why declarations are important.
But they're also go ahead.
Speaker 2 (10:44):
So that might resolve itself with a better luck. But meanwhile,
poor old New Zealand persts are going to be working
very hard to work out their process.
Speaker 3 (10:51):
Yes, yes, this is also true. I think first they
need to understand all the policies, all the regulations, all
the data that needs to be filled out for the
United States or for the goods going to you this,
and then they will share with the customers and businesses
in the United Park in New Zealand.
Speaker 2 (11:09):
Oh well, fingus craft, we saw it before It's time
to send our Christmas presents. Hey, thanks for maying much
for your time. Really appreciate it.
Speaker 3 (11:14):
In the rap.
Speaker 1 (11:15):
For more from the Weekend Collective, listen live to news
Talks It'd be weekends from three pm, or follow the
podcast on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talks.
I'd be so.
Speaker 2 (00:10):
New Zealand's Post has suspended shipping services to the United
States and some surrounding areas as they brace for the
tariffs to come into effect. Services will stop on the
twenty ninth of August, but New Zealand Posts says it
can't give customers an exact date for when things will
get going again. They expect the suspension to be short term,
but does beg the question of what planning they were
(00:32):
doing while tariff discussions have been happening for months and
professor of Economics at the University of Otago, murat Angor
is with me now.
Speaker 3 (00:38):
Good afternoon, Tim, How are you today?
Speaker 2 (00:42):
Good things? So the last I mean, we've known these
tariffs have been coming.
Speaker 3 (00:48):
What's happened here? So here, I think the starting point
should be learning Latin because we are talking about their
minimis shipments. So their minimis is a LA's an expression
that means trivial or saw my or that something can
be disregarded. And in the context of international trade and
(01:10):
in the context of United States, the minimums exemption had
allowed goods valued eight eight hundred dollars or less to
enter the United States without paying any tarifs. In other words,
United States consumers relied on the exemption to buy cheap
clothes and household items from online commerce sites from China
(01:34):
and from all over the world. It first started with China,
so first United States put some titifs for the goods
coming from China and Hong Kong, and then now it's
spread to the rest of the world, including shipments coming
from New Zealand and from the rest of the world.
Because these shipments are extremely important, let me give you
(01:58):
some facts. So these the minimum shipments account for more
than ninety percent of all cargo entering to the United States,
and US Customs and Border Protection processes around like four
million day minimum shipments a day, four million, so basically
(02:19):
and there's no tariff on all those goods. In addition
to this, there are lots of discussions regarding to dangerous narcotics,
other illicit goods, including chemicals and the materials such as
prell presses and molds used to manufacturing fentennil and other
synthetic drugs. So basically, the United States wants to protect
(02:42):
their national security and also they want to increase revenue.
Tariff ravine because tariff is a tax on international trade,
and who collects the taxes government, So it's also another
source of the government rivening because all those shipments once Mohenotima,
it was only like one hundred and forty million shipments
in twenty fourteen, I believe, and right now it rose
(03:05):
to one billion shipments, more than one billion shipments. So
we are talking about a lot of small shipments entering
into the United States. So it started in nineteen thirty.
So in nineteen thirty United States with the Law of
Tariff Act, so they gave actually let people skip import
fees for small value shipments, and about more than one
(03:29):
hundred countries have that the minimus exemptions. That was all
good and in the context of I believe it was
Barack Obama. So at that time US level used to
be two hundred dollars, but it rose to eight hundred
dollars in twenty sixteen when Barack Obama signed the Trade
Facilitation and Trade Enforcement Act, and it was actually when
(03:52):
President Biden was in the government, they were actually talking
about this because it creates a lot of disadvantage stuation
for United States. Think about US versus China. Like Temo
and Shane, I counted for around twenty percent of the
US This can't market in twenty twenty three. This hurts
all the small and medium sized companies in the United States,
(04:15):
for example.
Speaker 2 (04:16):
Well I heard, I mean it's going to impact a
lot of small businesses across in New Zealand as well,
how badly. What's your impact do you think it's going
to have in New Zealand?
Speaker 3 (04:25):
Yes, because when you think about New Zealand, New Zealand
is a nation of small and medium sized enterprises. To
some numbers, it's more than ninety seven percent ninety eight percent,
So more or less, we're a country of small and
medium sized enterprises. And I know that a lot of
smaller and medium sized enterprises sell consumer goods, fast fashioned toys.
(04:49):
I was just reading the news at a radio and
z I believe someone who was selling barrets or heads
to the United States. He was complaining about this. So
if you think about all these small and small companies,
they are going to be hurt badly.
Speaker 2 (05:05):
So all shipments, regardless of value, unless you're sending a
postcard to Grandma. Basically, I'm gonna need to go through
this formal entry priceis is exactly there is this gonna last?
Because it's not only bad for US, but I think
it's going to be quite frustrating to tens of millions
of Americans, isn't it.
Speaker 3 (05:26):
This is also true. And also it is because when
we think about international logistics, so it is very, very
big industry. I'm reading press releases from the Hild group
from Germany or from the what is the French postal
service La Post I believe, and their counterpart in Spain.
So they are all complaining because key questions remain unsolved.
(05:50):
What are they so particularly regarding how and by whom
custom duties will be collected in the future, and what
additional data will be required, and how the data transmission
to the United States Customs and Border Protection will be
carried out. So the reason that all these post offices
(06:10):
and partial companies are pressing pause is not just removing
the exemptions, but all this ambiguity regarding the implementation of policy.
So I think this is the reason of all these
short run tells we are experiencing right now.
Speaker 2 (06:25):
Is there some sort of blame that gets sheeted home
into post on us or is it that they're just
dealing with an administration that doesn't know what it's doing.
Speaker 3 (06:35):
But I think it's not just unique problem to the
New Zealand. I think it's also a problem for the
other parts of the countries and as well as the
international partial companies. So we cannot put them into the
New Zealand because we live in the age of uncertainty,
so there are almost every single day there's one announcement
coming from Donald Trump and administration. So it is not
(06:56):
easy for businesses or for our government agencies to adjust
this new policies immediately, so it takes time and especially
go ahead.
Speaker 2 (07:06):
Go ahead, And that's the challenge because look, we knew
the tariffs were coming, right, But I guess the challenge
is because of what you're talking about, the deminimus. So
even though if you're going to have tariffs, is that
the real problem. So the tariffs are one thing, and
we can get ready for that, and there's a mechanism
for implementing that, But as soon as they change the
domino deminimus to basically genuinely nothing, that's exactly that's the
(07:29):
spanner and the works is that.
Speaker 3 (07:31):
So this is also a case and in the context
of UH Tarius. For example, New Zealand applies very small
title frids for the goods coming from United States, and
New Zealand's always having sometimes I believe trade surplus fits
and need United States. So with the title fits we
are effectively penalized. But I believe there will be a
(07:52):
lot of meetings, one in September, one in October in
international settings because yes, for New Zealand, China has emergency
the number one trading partner, replacing Australia and United States.
And in addition to China, because Chinese growth rate has
been slowing from like ten percent growth rates to five
percent growth rates, so people are talking about who is
(08:15):
going to be the next China. So we have Indonesia,
we have Vietnam, we have India. Maybe in some of
other times people have Bangladesh. So I think one day
to deal with all of these trade chaos is to
increase your trade relations, economic cooperation relations with the new
emerging giants from China, Vietnam, India, Indonesia. They have all
(08:38):
very high growth rates and if you increase our trade
with them, it will be benefit of menus.
Speaker 2 (08:43):
Meanwhile, for people who want to send stuffter the States,
how much of a past. Do we need to give
in zid Post on this? When should we expect this
to you know, how much of an excuse to insid
Post have and for how long?
Speaker 3 (08:54):
So first of all, I don't know the answer, but
I think first so I should be honesstand that. And secondly,
I think because the political enters are coming to force
on twenty ninth of August, and then I think probably
for the first month, so I think I shouldn't expect
any resolution until maybe October, and maybe after October you
(09:18):
can see a better pictures and maybe a new announcement
from New Zealand Postulations as well as the other partial
companies all around the world.
Speaker 2 (09:26):
Is the best solution to this is that someone in
the United States administration realizes that they need to you know,
that it can't be as strict as it is. We're
going to have to allow people to see in presents
for birthdays and stuff without are being held up with
this massive democracy.
Speaker 3 (09:41):
Yes, exactly so, because when we think about trade, because
Trump is a business person, right businessman, and his pro
business and then you come up with all these regulations,
then you are actually hurting business. But of course they
also have a lot of national security concerns, which are
completely understandable. Then we think about all these prohibited agricultural
(10:04):
products able to meet meat products, and unfortunately all these
illicit drugs entering into the United States. Same thing happening
for the newsuals. Right, we cannot just import agricultural products
or meat products from some other parts of it because
if there is a disease, then there will be a
contigious effect. Then our ecosystem will be hurt completely. So
that's why the United States is also a little bit
(10:26):
trying to improve their standards on this. But as I said,
so I'm talking about four million parsons per day they
are actually going over this. It's almost impossible to check
the content of everything, so that's why declarations are important.
But they're also go ahead.
Speaker 2 (10:44):
So that might resolve itself with a better luck. But meanwhile,
poor old New Zealand persts are going to be working
very hard to work out their process.
Speaker 3 (10:51):
Yes, yes, this is also true. I think first they
need to understand all the policies, all the regulations, all
the data that needs to be filled out for the
United States or for the goods going to you this,
and then they will share with the customers and businesses
in the United Park in New Zealand.
Speaker 2 (11:09):
Oh well, fingus craft, we saw it before It's time
to send our Christmas presents. Hey, thanks for maying much
for your time. Really appreciate it.
Speaker 3 (11:14):
In the rap.
Speaker 1 (11:15):
For more from the Weekend Collective, listen live to news
Talks It'd be weekends from three pm, or follow the
podcast on iHeartRadio.
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