Trump's closure of the de minimis tariff loophole sent postal traffic to the U.S. to a 'near-halt'

Trump's Closure of De Minimis Tariff Loophole Sends Postal Traffic to U.S. to a Near-Halt The Universal Postal Union (UPU) reported on Saturday that postal traffic into the United States plummeted by more than 80% after the Trump administration eliminated a tariff exemption for low-cost imports, known as the de minimis loophole. According to the UPU, 88 postal operators worldwide have suspended or halted services to the United States until a solution is implemented regarding parcels valued at $800 or less. The new rules, which took effect on August 29, 2025, placed the burden of customs duty collection and remittance on foreign postal operators for the first time. "This has caused significant disruptions to international mail flows," said Masahiko Yamada, a spokesperson for Japan Post, one of the affected operators. "We are working closely with our U.S. counterparts to find a solution that will allow us to resume services." The de minimis exemption had allowed small packages valued at $800 or less to enter the United States duty-free. The Trump administration argued that this loophole was being exploited by foreign postal operators, who were shipping large volumes of low-value parcels into the country without paying customs duties. However, critics argue that the closure of the loophole will have far-reaching consequences for international trade and commerce. "This decision will disproportionately affect small businesses and individuals who rely on affordable international shipping," said a spokesperson for the International Chamber of Commerce (ICC). The UPU has begun rolling out new measures to help postal operators calculate and collect duties, but it remains unclear when services will resume. The global network saw a near-halt in postal traffic to the United States after the implementation of the new rules. Background: The de minimis exemption had been in place since 1969 and was intended to facilitate international trade by allowing small packages to enter countries duty-free. However, the Trump administration argued that this loophole was being exploited by foreign postal operators, who were shipping large volumes of low-value parcels into the country without paying customs duties. Additional perspectives: The closure of the de minimis loophole has sparked debate among international trade experts and policymakers. Some argue that it will help level the playing field for U.S. businesses, while others warn that it will have unintended consequences for global commerce. Current status: Postal traffic to the United States remains severely impacted, with many operators suspending or halting services until a solution is implemented. The UPU continues to work with postal operators and governments to find a resolution. Next developments: The UPU has scheduled an emergency meeting for next week to discuss the crisis and potential solutions. Meanwhile, the Trump administration has indicated that it will continue to enforce the new rules, despite growing international pressure to reconsider its decision. *Reporting by Fortune.*