Postal traffic to U.S. sank 80% after Trump administration ended exemption on low-value parcels

U.S. Postal Service delivery vehicles are parked outside a post office in Boys Town, Neb., Aug. 18, 2020. (AP Photo/Nati Harnik, File)

Postal traffic into the United States plunged by more than 80 per cent after the Trump administration ended a tariff exemption for low-cost imports, the United Nations postal agency said Saturday.

The Universal Postal Union says it has started rolling out new measures that can help postal operators around the world calculate and collect duties, or taxes, after the U.S. eliminated the so-called “de minimis exemption” for lower-value parcels.

Eighty-eight postal operators have told the UPU that they have suspended some or all postal services to the United States until a solution is implemented with regard to U.S.-bound parcels valued at US$800 or less, which had been the cutoff for imported goods to escape customs charges.

“The global network saw postal traffic to the U.S. 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 U.S. Customs and Border Protection agency-approved qualified parties,” the UPU said in a statement.

The UPU said information exchanged between postal operators through its electronic network showed traffic from its 192 member countries — nearly all the world countries — had fallen 81 per cent on Aug. 29, compared to a week earlier.

The Bern, Switzerland-based agency said the “major operational disruptions” have occurred because airlines and other carriers indicated they weren’t willing or able to collect such duties, and foreign postal operators had not established a link to CBP-qualified companies.

Before the measure took effect, the postal union sent a letter to U.S. Secretary of State Marco Rubio to express concerns about its impact.

The de minimis exemption has existed in some form since 1938, and the administration says the exemption has become a loophole that foreign businesses exploit to evade tariffs and criminals use to get drugs into the U.S.

Purchases that previously entered the U.S. without needing to clear customs now require vetting and are subject to their origin country’s applicable tariff rate, which can range from 10 per cent to 50 per cent.

While the change applies to the products of every country, U.S. residents will not have to pay duties on incoming gifts valued at up to $100, or on up to $200 worth of personal souvenirs from trips abroad, according to the White House.

The UPU said its members had not been given enough time or guidance to comply with the procedures outlined in the executive order U.S. President Donald Trump signed on July 30 to eliminate the duty-free eligibility of low-value goods.

The Associated Press