Postal traffic to the United States has come to a near standstill, plunging by more than 80% after the Trump administration’s abrupt elimination of a decades-old tariff exemption for low-value imports. According to the Universal Postal Union (UPU), a United Nations agency overseeing international mail, this unprecedented disruption stems from widespread suspensions by postal operators across the globe, who are grappling with the sudden imposition of new customs duties and the logistical chaos that followed.
The policy change, which took effect on August 29, 2025, ended the so-called de minimis exemption—a rule in place since 1938 that allowed items worth $800 or less to enter the United States duty free. As reported by Deutsche Welle and confirmed by the UPU, the number of such packages entering the US had skyrocketed from 140 million in 2014 to a staggering 1.36 billion by 2024. The Trump administration argued that this loophole was being exploited by foreign businesses to evade tariffs, and even by criminals to ship fentanyl and other illicit drugs into the country.
But the fallout was swift and severe. The UPU revealed that 88 postal operators worldwide have fully or partially suspended the shipping of parcels to the US, effectively bringing the flow of international mail to a crawl. Countries such as Mexico, Germany, France, Spain, Italy, Australia, Japan, Taiwan, India, and Switzerland are among those that have halted or curtailed services for business customers, as detailed by AP News and CTV News. The impact has been felt in nearly every corner of the globe, with disruptions rippling through e-commerce, logistics, and everyday consumers waiting for packages that may never arrive.
“The global network saw postal traffic to the US come to a near-halt after the implementation of the new rules on Aug 29, 2025, which for the first time placed the burden of customs duty collection and remittance on transportation carriers or US Customs and Border Protection agency-approved qualified parties,” the UPU said in a statement, as reported by AP News. The agency’s electronic network showed that traffic from its 192 member countries fell 81% on August 29, compared with a week earlier—a dramatic drop that underscores the magnitude of the disruption.
The new rules require all parcels shipped to the US to be subject to tariffs, and place the onus on postal operators and transport firms to collect the duties and process the necessary paperwork. However, as the UPU pointed out, operators were caught off guard. “Major operational disruptions” occurred because foreign postal operators had not been given enough time or guidance to comply with the procedures, and many had not established the required links with US Customs and Border Protection (CBP)-qualified companies. Airlines and other carriers, for their part, indicated they weren’t willing or able to collect such duties, compounding the confusion.
The executive order eliminating the de minimis exemption was signed by former President Donald Trump on July 30, 2025, and implemented just weeks later. Before the measure took effect, the UPU sent a letter to US Secretary of State Marco Rubio expressing concerns about its potential impact. The White House, however, maintained that the change was necessary to protect domestic manufacturers and close a loophole that had outlived its original purpose.
The consequences of the policy shift are being felt across industries. E-commerce giants like Amazon and Shein, which relied heavily on de minimis shipments to deliver affordable goods to American consumers, are being forced to rethink their cross-border strategies. Some are turning to consolidated bulk shipping to bypass postal woes, while others are exploring domestic sourcing options. For logistics firms, the suspensions mean reevaluating partnerships, particularly as European services have been among the first to pull back, leaving American retailers scrambling to fill gaps in their supply chains.
For everyday consumers, the effects are tangible. Delays in personal parcels have become common, and the cost of importing low-value goods is expected to rise by 10-15%, according to projections cited by The Times of India. Purchases that previously entered the US without the need to clear customs now require vetting and are subject to tariffs that can range from 10% to 50%, depending on the country of origin. While US residents are still exempt from duties on incoming gifts valued up to $100 or personal souvenirs up to $200, the vast majority of small parcels are now caught in the new regulatory web.
Trade negotiators and economists are closely monitoring the situation for signs of broader repercussions. There is concern that the US move could prompt retaliatory measures from trading partners, complicating ongoing talks with the European Union and China. The UPU, for its part, is working on “the rapid development of a new technical solution that will help get mail moving to the United States again,” according to Director General Masahiko Metoki, as quoted by Deutsche Welle. The agency has started rolling out new measures to help postal operators calculate and collect duties, but the process is expected to take time.
The policy change has also shifted small-parcel traffic away from traditional postal channels to costlier commercial carriers like FedEx and UPS, further inflating prices and slowing delivery times for everything from clothing to electronics. Industry experts warn that this could exacerbate inflationary pressures already straining US households, while also reducing consumer choice and hurting small businesses that depend on affordable imports.
As the dust settles, the path forward remains uncertain. The UPU is expected to lead dialogues aimed at standardizing responses and helping postal operators adapt to the new tariff environment. Logistics firms may need to invest in tariff-compliant technology or lobby for exemptions to navigate this new era of fortified borders. For now, with postal flows still down by more than 80%, the world is left to reckon with the far-reaching consequences of a policy change that has upended global supply chains and altered the way goods move across borders.
In the midst of this upheaval, one thing is clear: the end of the de minimis exemption marks a fundamental shift in international trade, and its ripple effects are likely to be felt for years to come.