In a significant shift in international trade practices, the termination of a tariff exemption for low-cost imports into the United States has resulted in a drastic reduction in postal traffic from around the world. This change, announced by the Trump administration, has caused more than an 80% drop in such shipments, according to data from the United Nations’ Universal Postal Union (UPU).
The scrapping of the de minimis exemption, which previously allowed for the duty-free importation of low-value goods priced at $800 or less, has had immediate and profound impacts on global postal operations and ecommerce. Announced on August 29, 2025, the new policy mandates that customs duties be collected on these imports at the point of entry, shifting the responsibility onto transportation carriers or parties approved by U.S. Customs and Border Protection (CBP).
Prior to this policy change, the UPU expressed concerns directly to U.S. Secretary of State Marco Rubio about the broad implications this shift would have on international trade. In a letter, the postal union outlined potential disruptions due to the administrative burden now placed on carriers and postal services to collect these duties, for which they were not adequately prepared. This sudden shift has led to a situation where many airlines and shipping carriers have been unable or unwilling to take on the responsibility of duty collection, leading to significant operational disruptions.
The ripple effects of this policy have been immediate and significant. On August 29, postal traffic to the United States from 192 member countries of the UPU nearly ground to a halt, showing a staggering 81% decrease compared to just a week earlier. This traffic decline was attributed to the major operational hurdles faced by postal operators who found themselves unprepared to link with CBP-qualified duty collection agencies.
The fallout from this change is partly due to the explosive growth in the volume of low-value parcels over the previous decade. As ecommerce flourished globally, the number of such parcels entering the U.S. skyrocketed from 134 million in 2015 to approximately 1.4 billion by 2025. The daily processing of these shipments by CBP reflected this explosive growth, with more than 4 million shipments being processed every day under the previous de minimis rules.
This new regulation forms part of a broader trade policy overhaul by the Trump administration aimed at enhancing national security and protecting the U.S. economy from what it perceives as unfair trade practices. By ending the de minimis provision—a policy in place since its insertion into the Tariff Act of 1930—the goal was to reduce foreign competition and promote American made goods. Nonetheless, the policy was not without exemptions; U.S. residents can still receive duty-free gifts up to $100 in value, and personal souvenirs from trips abroad valued up to $200 continue to be exempted from these new tariff impositions.
In response to these dramatic changes, the UPU has been proactive in rolling out new tools to aid global postal operators. These measures are designed to help these entities better calculate and collect the necessary duties on U.S.-bound parcels, providing some bridge to compliance with the United States’ newly adjusted import regulations.
From a broader perspective, this policy shift signifies a significant tightening of U.S. trade practices, particularly concerning the handling of imports. While it aims to protect domestic industries and address security concerns, the immediate impact on global postal traffic highlights the complex interdependencies in international trade. As countries and companies navigate these new rules, the potential for further economic disruption remains a clear risk.
Moreover, these events underscore the significant role international organizations like the UPU play in facilitating global commerce. As the entity responsible for coordinating international postal policies, the UPU’s efforts to mitigate the impacts of such policy changes are vital for maintaining cross-border trade fluidity.
In conclusion, the termination of the de minimis exemption marks a pivotal movement towards a more regulated and closely monitored import environment into the United States. While intended to bolster U.S. economic security and promote domestic industries, the immediate effects have raised questions about the preparedness of global postal systems to handle such abrupt policy shifts and the long-term implications for international ecommerce. As stakeholders continue to adjust to these changes, the international trading landscape will undoubtedly continue to evolve in response.
