Postal Traffic to US Plunges 80% After Trump Ends Tariff Loophole

The Universal Postal Union (UPU) released data revealing a substantial decline in postal traffic to the United States, surpassing 80% since the Trump administration’s decision to eliminate the de minimis tariff exemption for low-value packages. This significant drop has had far-reaching implications for the global e-commerce sector, raising concerns about the accessibility of affordable international goods for consumers.

The United Nations Postal Agency confirmed a significant drop in postal traffic into the United States. This decline, amounting to approximately 81%, occurred following the Trump administration’s decision to eliminate the longstanding duty-free exemption for imports valued under $800.

This policy change, which took effect in late August 2025, stands as one of the most substantial disruptions to international commerce in recent history.

What is the De Minimis Exemption?

Historically, the de minimis exemption allowed packages valued at under $800 to enter the U.S. without incurring tariffs. This was a strategic move to conserve government resources by minimizing the processing fees, which were more expensive to collect than the revenue generated. Consequently, this system played a pivotal role in the growth of international e-commerce, particularly benefiting consumers who could purchase low-cost items from overseas retailers.

Between 2015 and 2025, the volume of such shipments jumped dramatically from 134 million per year to approximately 1.4 billion, with U.S. Customs and Border Protection processing more than 4 million “de minimis” shipments daily.

Policy Rationale and Implementation

The Trump administration justified the policy change as a national security and economic protection measure. Under the new regulations, postal items that would previously qualify for de minimis treatment are now subject to duty rates of either 30% of their value or $25 per item, with rates increasing to $50 per item after June 1, 2025.

The policy affects roughly 4 million packages processed each day, creating immediate operational challenges for postal services worldwide. Personal gifts worth less than $100 remain duty-free under the new framework.

Global Postal Services React

The sudden policy implementation caught international postal services unprepared, forcing many to suspend shipments to the United States temporarily. European postal agencies and shipping companies announced they cannot process certain goods until new systems are established to handle the changed customs requirements.

The disruption extends beyond traditional postal services. Major shipping companies have had to rapidly adjust their operations to accommodate the new tariff structure, leading to delays and increased costs that are being passed on to consumers.

Impact on E-commerce and Consumers

The policy change has created significant challenges for small and medium-sized businesses that relied on affordable international shipping. Some businesses are passing additional tariff costs directly to consumers, with companies like Korean cosmetics brand Olive Young implementing 15% duties on all orders regardless of purchase amount.

Customs experts warn that small to medium-sized businesses face particular difficulties adapting to the new regulatory environment, as they lack the resources of larger corporations to navigate complex tariff structures.

Long-term Implications for Global Trade

The 80% decline in postal traffic signifies a fundamental shift in international commerce, going beyond mere statistics. Industry analysts predict that this decline could either accelerate the reshoring of manufacturing or compel companies to establish distribution centers within the United States to circumvent the new tariff structure.

The policy may also influence other countries to reconsider their own de minimis thresholds, potentially leading to a broader transformation in global e-commerce logistics. This could particularly impact developing economies that have built export industries around low-value consumer goods.

Government Response and Future Outlook

President Trump signed an Executive Order suspending duty-free de minimis treatment as part of broader efforts to protect American national security and economic interests. The administration has positioned this as a necessary correction to what it views as an exploited loophole that disadvantaged domestic businesses.

However, the dramatic reduction in postal volume raises questions about the policy’s unintended consequences, including reduced consumer choice, higher prices for American shoppers, and potential retaliation from trading partners.

The full economic impact of this policy shift will likely become clearer over the coming months as businesses and consumers adapt to the new reality of international commerce. What remains certain is that the era of easily accessible, low-cost international goods through postal channels has effectively ended.

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Key Takeaways

• Postal traffic to the US dropped by over 80% following the end of the de minimis tariff exemption
• The policy eliminated duty-free treatment for packages under $800, affecting 4 million daily shipments
• New tariff rates range from 30% of item value to $25-50 per package
• International postal services have suspended many US shipments while adapting systems
• Small businesses face significant operational challenges and increased costs
• Personal gifts under $100 remain exempt from the new tariff structure
• The change represents a fundamental shift in global e-commerce logistics

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