Postal traffic to the United States has plunged by about 81 percent following the end of the duty-free de minimis exemption for low-value packages to the US, according to a press release issued by the Universal Postal Union (UPU), the United Nations specialized agency for global postal cooperation.
The UPU has begun rolling out a technical solution to help postal players resume deliveries in light of the change that took place on Aug. 29, the release said.
A UPU spokesperson told Newsweek they had no further comment when reached by email Saturday, and referred any additional questions to its website.
Why It Matters
International postal exchanges are a backbone of cross-border e-commerce and small-business trade.
Sudden operational changes that halt or limit parcel flows to the U.S. risk disrupting supply chains, delaying consumer goods, and imposing unexpected costs on merchants and shoppers.
Multiple national postal services announced pauses or suspensions of U.S.-bound parcels around the Aug. 29 implementation date, highlighting the scale of the disruption.
What To Know
The UPU’s electronic network data showed traffic from member countries to the U.S. fell 81% on Friday, Aug. 29, compared with the previous Friday, Aug. 22, following the suspension of the de minimis exemption, which allows low-value imports to enter a country free of customs duties and taxes.
It is not yet clear exactly how much financial loss has been suffered as a result of the decrease in shipments.
The suspension came amid the Trump administrations broad tariff changes, with the administration saying the de minimis was used by importers to avoid paying duties on imports.
The de minimis exemption was first established in U.S. law in 1938. Under Barack Obama‘s Trade Facilitation and Trade Enforcement Act of 2015, the value of a shipment that could be imported free of duties was raised from $200 to $800.
The recent changes made by the Trump administration now shift responsibility for duty collection to carriers and CBP (customs and border protection)-approved parties, prompting many postal operators and some carriers to pause or suspend shipments to the U.S. while they adapt.
The U.S. broadened prior changes that had already removed the exemption for China and Hong Kong.
As a result, 88 postal operators reported suspending some or all services to the U.S. until a solution is in place, the UPU said.
CBP will now collect duties on all parcels; postal operators may collect ad valorem duties (taxes on imports calculated as a percentage of their value) or use a temporary flat-fee option during a transition period.
Letters, documents and gifts worth less than $800 are still being delivered to the U.S.
The UPU said it has deployed a landed-cost calculator API, or application programming interface, which automates the calculation of the total cost of a product from its manufacturing point to its final destination, including shipping, insurance, duties, taxes, and other fees.
The API will help UPU members integrate a Delivered Duty Paid (DDP) solution into its Customs Declaration System to allow posts to collect required charges at origin.
What People Are Saying
UPU Director General Masahiko Metoki said in a press release Friday: “The UPU has in its mission the responsibility to guarantee the free circulation of postal items over a single postal territory. We’re working to uphold that responsibility with the rapid development of a new technical solution that will help get mail moving to the United States again.”
Peter Navarro, White House Trade Adviser said during a press call in August, as reported by the Daily Caller: “President Trump’s ending the de minimis loophole will save thousands of American lives by restricting the flow of narcotics and other dangerous and prohibited items, add up to $10 billion a year in tariff revenues to our Treasury, create thousands of jobs and defend against billions of dollars lost to counterfeiting, piracy and intellectual property theft.”
What Happens Next
The UPU said its API and the roll out of a Delivered Duty Paid integration in its Customs Declaration System will help the 176 postal operators using that platform move to collect duties and remit payments to qualified parties.
The UPU also said it will provide procedural support and training for postal operators.
These operators will need to connect to CBP-approved qualified parties or use the UPU’s tools to collect duties at origin; carriers that decline the obligation risk ongoing service suspensions.
The Trump administration has set a transition timeframe, that includes temporary flat-fee options with a requirement for full ad valorem collection, to be completed by Feb. 28, 2026, while CBP and U.S. officials engage with foreign partners to reduce disruptions.
The post Postal Union Sees 80 Percent Decrease in Shipments to US Following Tariffs appeared first on Newsweek.
