Postal Traffic to the US Plummets Following End of De Minimis Exemption

Postal Traffic to the US Plummets Following End of De Minimis Exemption

Since the Trump administration removed the de minimis exemption for low-cost imports, postal traffic into the United States has tanked. The result has been an almost unimaginable 80% decline. That change went into effect on its own by operation of law on August 29, 2025. It affects every country and every country has experienced significant interruptions to the movement of international mail. The de minimis exemption has existed since 1938. It allows a wide range of imported goods that are worth $800 or less per person to enter the US without incurring customs duties.

The administration alleges that foreign companies abused the exemption to avoid tariffs. They further claim that its lack of law enforcement provision enabled the proliferation of illegal activities, including drug trafficking. These concerns led the White House to address these criticisms by announcing a new implementation change. The old threshold for duty-free imports will be eliminated, which has led postal shipments to plummet.

The Universal Postal Union (UPU) warned that at least 88 postal operators around the world have suspended either some or all postal services to the US. This suspension should stay in place until a workable solution for parcels worth $800 or less is found. The UPU noted that due to the new regulations, “the global network saw postal traffic to the US come to a near-halt after the implementation of the new rules on Aug 29, 2025, which for the first time placed the burden of customs duty collection and remittance on transportation carriers or US Customs and Border Protection agency-approved qualified parties.”

As a result of these shifts, products that could previously be shipped to the US without going through customs clearance now require extensive vetting. They are equally subject to applicable tariff rates, depending on country of origin/production. Apart from these logistical and budgetary concerns, airlines and other carriers have already shown their unwillingness or incapacity to collect duties.

Current law US residents may currently import gifts valued at up to $100 without paying duties on them. Further, personal effects taken abroad valued at up to $200 are exempt from these costs. The bigger picture, including the impact of the policy shift itself, is starting to drown out these exclusions. Consequently, international postal traffic has dropped precipitously.

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