Staggering Decline in Postal Shipments to the US

In a shocking revelation, postal traffic directed towards the United States has nosedived by more than 80% following the implementation of new tariffs by the Trump administration on August 29, according to the Universal Postal Union (UPU), a specialized agency of the United Nations.

A Global Shipping Crisis Unfolds

The UPU reported that a staggering 88 postal operators around the globe have either fully or partially suspended their parcel shipments to the US. This unprecedented halt in international mail traffic raises concerns for both consumers and businesses alike.

The End of the De Minimis Exemption: What Does It Mean?

In a bid to introduce tighter regulations, the Trump administration abolished the de minimis exemption this past August. Previously, this exemption—active since 1938—allowed small packages valued at $800 or less to enter the US without incurring any customs duties.

Surge in De Minimis Packages: A Double-Edged Sword

This exemption had fostered a dramatic increase in low-value imports, with the number of de minimis packages skyrocketing from 140 million in 2014 to a staggering 1.36 billion projected by 2024, as reported by the US Customs and Border Protection agency. Critics argue that this influx negatively impacts US retailers and could facilitate the unchecked entry of unsafe products, including drugs like fentanyl.

The UPU's Serious Concerns

The UPU has voiced substantial concerns over the recent tariff changes, noting that these new rules make all parcels entering the US subject to tariffs. Furthermore, postal operators and transport companies must now shoulder the responsibility for collecting customs duties and managing the necessary paperwork.

Logistical Nightmares Ahead

However, the agency pointed out that operators were caught off-guard by the rapid implementation of these changes and lacked adequate time to establish the required processes and connections with US customs authorities. This lack of preparation has resulted in "major operational disruptions" across the board.

Efforts to Revive Mail Services

In response to this crisis, UPU Director General Masahiko Metoki has announced initiatives for the swift development of a technical solution aimed at re-establishing the flow of mail to the United States.

Who’s Cutting Ties?

Countries including Mexico, Germany, France, Spain, Italy, Australia, Japan, Taiwan, India, and Switzerland have confirmed they are halting parcel shipments for business customers bound for the US. This widespread suspension reflects the global panic generated by the new tariff regime.