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U.S. Ends Duty-Free Imports Mexico Halts Package Deliveries

As the United States scraps a key tax exemption on low-value imports, Mexico and other nations suspend postal shipments to the U.S., leaving businesses and individuals in limbo amid new tariffs and customs confusion.

6 min read

Mexico’s national mail service, Correos de México, has abruptly halted all postal and package shipments to the United States, a move that has rippled across borders and left businesses and individuals scrambling for answers. The suspension, which took effect on August 27, 2025, comes in direct response to a sweeping policy change in Washington: the elimination of a long-standing U.S. import tax exemption for packages valued under $800, commonly known as the “de minimis” exception.

For nearly a decade, the “de minimis” rule allowed Americans to receive billions of dollars’ worth of low-value goods from abroad—think clothing, electronics, and gifts—without paying a cent in tariffs. According to U.S. Customs and Border Protection, 1.36 billion shipments, worth a staggering $64.6 billion, entered the U.S. under this exemption in 2024 alone. But starting August 29, 2025, every package arriving from outside the U.S.—regardless of value—will be subject to new taxes and customs procedures.

The sudden policy shift has thrown international postal systems into disarray. Mexico’s Ministry of Foreign Affairs described the stoppage as a temporary measure, stating, “while the new operational processes are established,” echoing similar suspensions in countries such as Germany, France, Austria, Denmark, Sweden, Italy, and the United Kingdom. Postal operators in Australia and Japan have joined the pause, all awaiting clarity from U.S. authorities on the new import duties and the mechanics of reporting, collecting, and remitting customs charges.

“Mexico continues its dialogue with U.S. authorities and international postal organizations to establish mechanisms for the orderly resumption of services, providing certainty to users and avoiding setbacks in deliveries,” the Mexican government said in a statement, as reported by Agency. The uncertainty has already touched ordinary people: at a Mexico City post office, Yunnueth Hernández shared her disappointment after being told she could not send a letter to the U.S., and outside, another woman was seen weeping after her attempt to mail photos to her boyfriend was thwarted.

So, what triggered this international postal standoff? The answer lies in President Donald Trump’s ongoing trade war and a renewed focus on border security and economic protectionism. The White House announced the end of the “de minimis” exemption for all countries on July 30, 2025, expanding a measure that had already been applied to China, Hong Kong, Mexico, and Canada. As reported by Mexico News Daily, Trump justified the crackdown by saying the loophole had been used to “evade tariffs and funnel deadly synthetic opioids as well as other unsafe or below-market products that harm American workers and businesses into the United States.”

The new tariffs are not a one-size-fits-all affair. Packages entering the U.S. will face duties ranging from 10% to 50%, depending on their country of origin. For the next six months, some carriers will have the option to pay a flat fee of $80 to $200 per package. For Mexican shipments, the situation is especially complex: there’s no across-the-board tariff rate. Goods that comply with the 2020 US-Mexico-Canada Agreement (USMCA) may be exempt, but others could face tariffs as high as 50%. The patchwork of rules means that small businesses and individuals are left guessing about what to expect at the border.

Mexican analyst Carlos Mota laid out the likely fallout for businesses in Mexico trying to sell to U.S. customers. “Every Mexican package sent to the U.S. will be subject to taxes, regardless of its value, which will increase the cost of products and reduce profit margins,” he explained. The increased costs are expected to shrink the variety of goods available on cross-border e-commerce platforms like Amazon Mexico and Mercado Libre, both of which have enabled small businesses to reach American consumers. “U.S. customs will strengthen surveillance to ensure the correct tariff classification of all types of goods, from clothing to pet toys,” Mota added, warning that many small businesses could struggle to navigate the new expenses and complex customs procedures.

Major shipping companies are also in a holding pattern. DHL, one of the world’s largest logistics providers, noted that “key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out.” The confusion has left both senders and recipients in limbo, with no clear timeline for when normal service might resume.

The end of the “de minimis” exemption is part of a broader U.S. strategy to clamp down on what the Trump administration sees as unfair trade practices and security threats. In May, Trump eliminated the exemption for goods from China, citing not only economic concerns but also the role of small packages in facilitating the smuggling of fentanyl and other drugs. The White House has layered on additional tariffs for sectors like semiconductors, steel, aluminum, vehicles, and auto parts, and has pushed for increased cooperation from trade partners on security and law enforcement.

Mexico, for its part, is still negotiating its tariff rate with the U.S. and has pledged to raise tariffs on Chinese goods and take tougher measures against drug cartels in hopes of securing a more favorable deal. These negotiations are happening alongside broader talks aimed at preventing even wider tariffs on Mexican exports, with Mexico offering greater cooperation on security and extraditions of cartel leaders as bargaining chips.

But while diplomats and trade negotiators hash out the details, the impact on everyday people is immediate and tangible. Small businesses that rely on affordable, cross-border shipping to reach U.S. customers are bracing for a sharp downturn. Individuals hoping to send gifts, letters, or care packages to loved ones across the border find themselves at a sudden impasse. And for the millions of Americans accustomed to shopping on international e-commerce platforms like Shein and Temu, new taxes and shipping delays could soon become the new normal.

Some goods will still be covered by the USMCA, offering a glimmer of hope for certain sectors. But for now, the once seamless flow of packages between Mexico and the U.S. has ground to a halt, caught in the crossfire of shifting trade policies and global uncertainty. As both sides work to establish new operational protocols, businesses and families on both sides of the border are left waiting—and hoping for a swift resolution.

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