How Trump’s Abolishment of Low-Value Parcel Exemption Caused 80% Drop in U.S. Postal Traffic

Postal traffic to the United States has dropped dramatically, with a decrease of over 80% following a new tariff imposed by the Trump administration. This change ended the “de minimis exemption,” which previously allowed low-cost imports to enter without tariffs.

The Universal Postal Union (UPU), which represents postal services worldwide, is now working on ways to help postal operators tackle this new duty collection requirement. Since the cutoff for low-value parcels is now set at $800, many international postal services have halted shipments to the U.S. until new systems are put in place.

After the new rules kicked in on August 29, 2025, the impact was swift. The UPU reported an 81% decline in mail traffic from its member countries compared to the previous week. Airlines and carriers have been reluctant to collect duties, causing major disruptions.

The de minimis exemption has been around since 1938, and the U.S. government argues it has been misused, allowing foreign companies to avoid tariffs and contributing to illegal smuggling. Now, packages that once passed through without scrutiny must be evaluated based on their country of origin and corresponding tariff rates, which can be anywhere from 10% to 50%.

Gifts worth up to $100 and personal souvenirs valued at up to $200 are still exempt from duties, which softens the blow for average consumers. However, many postal operators say they were not adequately prepared for these new rules, revealing gaps in communication and guidance prior to implementation.

This change reflects broader trends in global trade dynamics. As e-commerce grows, these regulations could continue to evolve, prompting ongoing discussions among trade leaders and postal authorities.

For further reading on the tariff issues and their implications, check the UPU’s official statement.

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International trade, Business, World news, General news, Article, 125322625