The Universal Postal Union (UPU) reports a dramatic decline in postal traffic to the U.S. following the end of a trade exemption rule. After August 29, 2025, the “de minimis” rule, which exempted small packages under $800 from tariffs, was suspended, leading to an 81% drop in traffic compared to the previous week. The UPU is actively developing a technical solution to restore mail flow. This move was initiated by the Trump administration, citing concerns about counterfeit goods, fentanyl, and the trade deficit.
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Due to a rule change implemented by the Trump administration ending the “de minimis” exemption, U.S. shoppers are experiencing cancellation notices on orders from abroad. This change eliminates the duty-free status for items valued under $800, leading postal services in several countries, including Mexico, to suspend deliveries to the United States. E-commerce platforms like Etsy and eBay have warned about shipping disruptions, as foreign postal systems lack the infrastructure to process tariffs, essentially requiring them to act as import tax collectors for the U.S. government. While the administration anticipates increased revenue and benefits, critics argue it will disrupt trade, with some U.S. small businesses potentially facing challenges due to higher shipping costs.
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The U.S. is ending the “de minimis” exemption, which allowed duty-free shipments under $800, leading to widespread cancellation notices for small goods ordered from abroad. Many countries, including several European nations, have suspended U.S.-bound shipments in response. E-commerce platforms like Etsy and eBay have warned of shipping disruptions, and some carriers are contracting with third-party duty processors to maintain deliveries. The change aims to collect billions in revenue, boost U.S. businesses, and restrict illegal goods, but it presents challenges for small businesses and consumers who rely on affordable international shipping.
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Due to the impending expiration of the “de minimis” exemption, which previously allowed duty-free entry for packages under $800, several European postal services are suspending shipments to the United States. This action comes amidst confusion regarding new import duties and a lack of clarity on how they will be collected. Germany, Denmark, Sweden, and Italy have already halted shipments, with others like France and Austria following, expressing concerns about data requirements and the short timeframe to adapt to the changes. Postal services are seeking clarification from U.S. authorities, as the Trump administration moves forward with the duties, despite an insufficient system to collect them.
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Starting August 23, postal services in Norway, Sweden, Denmark, and Belgium will temporarily halt parcel shipments to the US due to the upcoming suspension of the “de minimis” customs exemption. This exemption previously allowed low-value packages to enter the US duty-free, but the change means shipments will now face tariffs, which these postal operators are not yet equipped to handle. Consequently, this decision will affect packages beyond letters, potentially forcing sellers to cancel orders or seek alternative shipping methods. The temporary halt is a result of not being able to handle the new customs declaration paperwork and payment methods required.
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Following a temporary suspension, the U.S. Postal Service resumed accepting mail and packages from China and Hong Kong. This action, effective immediately, comes after the implementation of new tariffs on Chinese goods, including the closure of the “de minimis” trade loophole which allowed duty-free entry for packages under $800. The suspension of de minimis is expected to significantly impact Chinese e-commerce companies like Temu and Shein. The USPS and Customs and Border Protection are collaborating to efficiently manage the new tariff system and minimize delivery disruptions.
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John Q. Hosedrinker