What is the story about?
What's Happening?
Postal traffic into the United States has decreased by over 80% following the Trump administration's decision to end the tariff exemption for low-value parcels. The Universal Postal Union (UPU) reported that many postal operators have suspended services to the U.S. due to the new requirement for customs duty collection on parcels valued at $800 or less. The exemption, known as the 'de minimis' rule, allowed low-cost imports to enter the U.S. without customs charges. The change, effective August 29, 2025, places the responsibility of duty collection on transportation carriers or U.S. Customs and Border Protection-approved parties.
Why It's Important?
The elimination of the de minimis exemption has significant implications for international trade and postal services. The exemption was seen as a loophole exploited by foreign businesses to avoid tariffs and by criminals to smuggle drugs into the U.S. The new rules aim to close this loophole, potentially increasing revenue from customs duties. However, the abrupt change has disrupted global postal operations, affecting businesses and consumers relying on low-cost imports. The policy shift reflects broader trade and security priorities under President Trump, emphasizing stricter controls on imports and customs enforcement.
What's Next?
The UPU is working on measures to help postal operators comply with the new U.S. customs requirements. The disruption in postal traffic may lead to negotiations between international postal agencies and U.S. authorities to find solutions that minimize operational impacts. Businesses affected by the change may seek alternative shipping methods or adjust their import strategies. The long-term effects on international trade and postal services will depend on how quickly stakeholders can adapt to the new regulations and whether further policy adjustments are made.
AI Generated Content
Do you find this article useful?
