Ongoing postal freeze to the US continues to disrupt Australian small businesses

The ongoing suspension of shipments to the United States is causing significant challenges for Australian small businesses, with services not expected to fully resume until 25 September 2025.

Council of Small Business Organisations Australia (COSBOA) Chair, Matthew Addison, said the disruption is due to new tariff and administrative requirements on small parcels entering the US, which have temporarily affected the ability of postal operators worldwide to continue processing these shipments.

“Small businesses have been unable to fulfil customer orders to the US for almost a month, resulting in lost income, delayed deliveries, and the need to rebuild customer confidence,” Mr Addison said.

Around 26 countries have faced similar disruptions as postal operators adjust to these new requirements. Australian small businesses in sectors such as fashion, gifts, food and wine, and specialty retail have been particularly affected, as many rely heavily on exports to the US market.

“For many micro and small businesses, these export markets are critical. Unlike larger companies, they don’t have the flexibility to switch couriers or absorb higher freight costs, so any disruption can have a very real impact on their operations,” Mr Addison said.

While Australia Post has indicated shipments should resume later this month following the introduction of a new duty collection system via a third-party provider, the freeze has already created a backlog of orders and ongoing uncertainty for small operators.

COSBOA is calling on the Australian Government to act quickly to resolve the underlying tariff and administrative barriers affecting small-value shipments to the US, so that small businesses can regain certainty and continue trading smoothly.

“With 2.5 million small businesses employing almost 5 million Australians and contributing around one-third of our GDP, it’s vital that government acts swiftly to remove these barriers and support small exporters,” Mr Addison said.

COSBOA will continue to work with its members, government, and industry stakeholders to ensure the voices of small businesses are heard and that safeguards are in place to prevent similar disruptions in the future.

For more information, visit www.cosboa.org.au.

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For media enquiries or interviews, please contact Matthew Addison, Chair, COSBOA on chair@cosboa.org.au or call +61 (0) 421 553 613.

About COSBOA

Established in 1979, The Council of Small Business Organisations Australia (COSBOA) is a member based not-for-profit organisation exclusively representing the interests of small businesses. The capability, representation, and reach of COSBOA are defined by a mix of over 50 national and state-based members. COSBOA's strength is its capacity to harness its members' views and advance consensus across policy areas common to many.

Our member organisations work with the COSBOA team to assist us with policy development and guide our advocacy - not just for small businesses but also for the benefit of the Australians they employ. In this capacity, COSBOA makes submissions and representations to the government, including its agencies, on issues affecting small businesses and to pursue good policy.