Dramatic Decline in U.S. Postal Traffic After Low-Value Parcel Exemption Ends

After the U.S. government discontinued exemptions for low-cost imports, inbound mail traffic to the country has significantly decreased, the United Nations postal agency disclosed.

The Universal Postal Union (UPU) has initiated the implementation of new strategies to aid global postal services in managing and imposing levies following the cessation of the 'de minimis exemption' on small-value packages destined for the United States.

A total of 88 postal services have reported to the UPU that they have halted or diminished their operations for packages heading to the U.S. This decision affects parcels worth $800 or below, which previously bypassed customs duties.

"The global postal network experienced a marked reduction in U.S.-bound shipments immediately after the enforcement of the new regulations on August 29, 2025," the UPU stated, noting that customs duties now fall to transport carriers or U.S. Customs and Border Protection-approved entities.

Data from the UPU's electronic exchange system reveals that mail volume from its 192 participating countries plummeted by 81% on August 29 compared to the earlier week.

Based in Bern, Switzerland, the UPU highlighted operational challenges, citing that carriers have shown reluctance or inability to handle duties, and many foreign postal services have not created partnerships with U.S. customs-approved entities.

In the last decade, the influx of small-value parcels to the United States has surged, rising from 134 million to approximately 1.4 billion annually from 2015 to 2025. The U.S. Customs and Border Protection was handling over 4 million of such shipments daily.

Before the rules were enforced, the postal union had formally expressed to U.S. Secretary of State Marco Rubio their apprehensions over the impending impact.

The 'de minimis' provision was incorporated into the Tariff Act of 1930, years following its enactment. Its purpose was to ease trade by removing the administrative hassle tied to taxing inexpensive goods.

Items that previously bypassed customs review now undergo scrutiny alongside their country's tariffs, which vary between 10% to 50%.

Despite the broader application to all international products, certain allowances remain for U.S. residents, who are exempt from duties on imported gifts up to $100 or personal trip souvenirs up to $200, stated the White House.

The UPU indicated its members were not adequately prepared or informed of the procedures for abiding by the U.S.'s recent elimination of low-value goods' duty-free status.