Postal Traffic to US Drops More Than 80% After Trade Exemption Rule Ends, UN Agency Says
GENEVA - The global postal network saw a significant drop in traffic en route to the United States after the Trump administration suspended a trade exemption rule in late August, according to the Universal Postal Union (UPU). The UPU reported that postal traffic to the US fell by more than 80% on August 29, compared to a week earlier.
The "de minimis" trade exemption allowed small packages worth less than $800 to be exempt from tariffs. However, when this rule ended on August 29, data between postal operators showed a drastic decline in traffic. The UPU stated that the global postal network saw a near-halt of postal traffic en route to the US.
"We're working to uphold our responsibility to guarantee the free circulation of postal items over a single postal territory," said a spokesperson for the UPU. "We're developing a new technical solution that will help get mail moving again."
The trade exemption rule was part of a 1969 agreement between the US and other countries, which allowed small packages to be sent tariff-free. However, in 2020, the Trump administration renegotiated the agreement, removing the exemption for packages worth less than $800.
According to the UPU, the sudden drop in traffic has caused significant disruptions to global postal services. "The impact on our members is substantial," said a spokesperson for the International Post Corporation (IPC), a global postal industry association. "We're working closely with the UPU to find solutions that will restore normal service levels."
The UPU is currently working on developing a new technical solution to facilitate the flow of mail between countries. The agency has stated that it aims to have a solution in place by the end of 2025.
Background: The Universal Postal Union (UPU) is an international organization responsible for setting global postal standards and regulations. The UPU has 192 member countries, including the US. The "de minimis" trade exemption was part of a long-standing agreement between the US and other countries to facilitate the exchange of small packages.
Additional Perspectives: Industry experts have expressed concerns about the impact of the rule change on global trade and commerce. "The sudden removal of the tariff exemption has caused significant disruptions to our supply chain," said a spokesperson for a major e-commerce company. "We urge the UPU and other stakeholders to work together to find a solution that will restore normal service levels."
Current Status: The UPU is working closely with its member countries, including the US, to develop a new technical solution to facilitate the flow of mail between countries. The agency has stated that it aims to have a solution in place by the end of 2025.
Next Developments: The UPU will continue to work on developing a new technical solution to facilitate the flow of mail between countries. The agency will also engage with its member countries, including the US, to ensure a smooth transition and minimize disruptions to global postal services.
*Reporting by Npr.*
