The reason why postal traffic to the U.S. has dropped by over 80% and what it means for the economy

Starting on August 29th, all packages coming into the United States face import duties and tariffs. Prior to that date, those worth less than $800 were exempt from import taxes under the ‘de minimis’ trade rule.

The effect of the change, ordered by President Donald Trump at the end of July, has been jaw dropping. Postal traffic to the United States has plummeted by over 80% according to the Universal Postal Union (UPU), the United Nations’ postal cooperation agency.

Eighty-eight postal operators informed the UPU that they have either partially or fully stopped sending mail to the US until a solution is implemented. Postal services in Australia, France, Germany, India, Japan and the UK have temporarily suspended shipments to the United States according to the Associated Press.

“The UPU has in its mission the responsibility to guarantee the free circulation of postal items over a single postal territory,” Masahiko Metoki, the UPU’s director general, said in a statement. “We’re working to uphold that responsibility with the rapid development of a new technical solution that will help get mail moving to the United States again.”

Trump administration closing “loophole” used by criminals

Trump’s first executive order in April ended the $800 ‘de minimis’ trade exemption for goods shipped to the US from China and Hong Kong. After consultation to ensure that tariffs could be slapped on all packages coming to the US, he signed a second executive order in July, suspending the de minimis exemption globally.

The administration claims that it is eliminating “a pathway long exploited by criminals” as its reasoning behind the move.

“For too long, this loophole handed criminal networks a free pass to flood America with fentanyl, fake goods, and illegal shipments. Those days are over,” said US Customs and Border Protection Commissioner Rodney Scott in a statement announcing the start of enforcement. “We are securing the border, restoring fairness to trade, and protecting American families.”

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