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Parcel Traffic to US Plunges After De Minimis Exemption Ends
The Universal Postal Union reported that postal traffic to the United States dropped over 80% following the Trump administration's removal of the de minimis exemption for low-cost imports, which had allowed items valued at $800 or less to enter without duties. This policy change, implemented on August 29, 2025, shifted the responsibility for customs duty collection from the U.S. Customs and Border Protection (CBP) to transportation carriers, leading to significant disruptions in postal services. As a result, 88 foreign postal operators ceased or reduced their services to the U.S. due to the inability to navigate the newly established customs procedures.
The de minimis exemption, which has been in place for decades, aimed to facilitate low-value trade but was seen by the administration as a loophole enabling tariff avoidance and potential illegal activities. Now, goods that used to enter the U.S. duty-free face a comprehensive customs process, with tariffs ranging from 10% to 50% based on their countries of origin. While U.S. residents can still receive some gifts and personal items without duties, the broader impact of this policy change is profound, especially for low-cost international parcels.
In my expert opinion, this dramatic reduction in postal traffic signals a need for more streamlined and user-friendly customs processes that balance security and compliance with the realities of global trade. The requirements placed on transportation carriers and foreign postal operators indicate a gap in international collaboration and preparedness to adapt to new regulations. Effective communication and guidance are essential to facilitate smooth transitions during such significant policy shifts, ensuring that both governments and postal operators can efficiently handle the complexities of global trade without stifling it.
The de minimis exemption, which has been in place for decades, aimed to facilitate low-value trade but was seen by the administration as a loophole enabling tariff avoidance and potential illegal activities. Now, goods that used to enter the U.S. duty-free face a comprehensive customs process, with tariffs ranging from 10% to 50% based on their countries of origin. While U.S. residents can still receive some gifts and personal items without duties, the broader impact of this policy change is profound, especially for low-cost international parcels.
In my expert opinion, this dramatic reduction in postal traffic signals a need for more streamlined and user-friendly customs processes that balance security and compliance with the realities of global trade. The requirements placed on transportation carriers and foreign postal operators indicate a gap in international collaboration and preparedness to adapt to new regulations. Effective communication and guidance are essential to facilitate smooth transitions during such significant policy shifts, ensuring that both governments and postal operators can efficiently handle the complexities of global trade without stifling it.
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