US Postal Traffic Plummets Over 80% as Trump Ends Key Exemption: What You Need to Know

Since the Trump administration ended a tariff exemption for low-cost imports, postal traffic into the United States took a steep dive—over 80%. The Universal Postal Union (UPU) noted that many global postal services have halted shipments to the U.S. This change happened on August 29, 2025, and it marked the first time importers had to handle customs duties directly.

Under the previous system, packages valued at $800 or less could enter the U.S. without customs fees. But with this new rule, postal operators are grappling with additional duties. As a result, 88 postal operators temporarily suspended services to the U.S. until a clearer solution emerges. The UPU reported an astounding 81% drop in traffic from its 192 member countries shortly after the policy change. Concerns have grown about how international carriers will manage these additional burdens.

The UPU emphasized the challenges operators face in adjusting to these new rules. Airlines and carriers express they can’t absorb the duty collection, leaving foreign postal services unsure how to adapt. This has led to significant operational disruptions.

Historically, the de minimis exemption has been a part of U.S. customs regulation since 1938. It allowed low-value items to slip through without customs checks. However, officials argue that it has been exploited by foreign businesses and even used to smuggle drugs.

Now, every item that enters the U.S. faces scrutiny. Duty rates can range from 10% to as high as 50%, depending on its origin. Interestingly, gifts up to $100 and personal souvenirs valued up to $200 are still exempt from duties.

This policy shift has not been without controversy. Just before the implementation, the UPU reached out to U.S. officials, expressing concern over the potential fallout. If these disruptions continue, it could reshape global e-commerce dynamics.

Experts warn that if these measures persist, it could lead to higher prices for consumers and diminish the appeal of cross-border shopping.

For further details on the changes and their implications, you can read more on The Guardian.

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