What's Happening?
The Trump administration's decision to suspend the 'de minimis' trade exemption rule has led to a significant decline in postal traffic to the United States. The Universal Postal Union (UPU) reported that postal traffic to the U.S. dropped by 81% on August 29, 2025, compared to the previous week. This rule previously allowed small packages valued under $800 to enter the U.S. without tariffs. President Trump signed an executive order on July 30, 2025, to end this exemption, aiming to curb the entry of counterfeit goods and illegal substances like fentanyl, and to address the trade deficit. As a result, at least 88 postal operators have halted some or all services to the U.S. The UPU is actively seeking solutions to restore postal traffic.
Why It's Important?
The suspension of the 'de minimis' rule is a significant move in U.S. trade policy, impacting international postal services and potentially affecting global trade dynamics. By imposing tariffs on all imports, the U.S. aims to protect domestic industries and reduce illegal imports. However, this decision disrupts international postal services, affecting businesses and consumers reliant on cross-border trade. The move could lead to increased costs for consumers and businesses importing goods into the U.S., potentially affecting small businesses and e-commerce platforms that depend on affordable international shipping.
What's Next?
The UPU is working on developing a technical solution to resume postal traffic to the U.S. Meanwhile, the suspension of services by numerous postal operators indicates potential long-term disruptions in international mail services. Stakeholders, including international businesses and postal services, may lobby for policy adjustments or seek alternative solutions to mitigate the impact of the new tariffs. The U.S. administration may face pressure to reconsider or modify the policy to balance trade security with the need for efficient international postal services.
