GENEVA – International postal flows to the United States have plunged after Washington scrapped a key tax exemption on small packages, triggering a wave of service suspensions by 88 postal operators worldwide, according to the Universal Postal Union (UPU).
The UN postal agency said traffic to the US dropped 81% on Aug 29 compared with the previous week, the day the new rules came into force. The disruption underscores the ripple effects of US trade policy on global logistics and e-commerce supply chains.
UPU director-general Masahiko Metoki said the organisation is working on a “rapid technical solution” to restore mail flows. “Our priority is to get mail moving to the United States again,” he said in a statement.
The US administration announced in late July that it would abolish the long-standing de minimis exemption, which had allowed small packages to enter tariff-free. The move effectively imposed new duties and compliance costs on cross-border parcels — a change that postal operators warn could erode margins for exporters, online retailers, and logistics providers reliant on low-value e-commerce.
Postal services in major economies including Germany, Britain, France, Japan, Italy, India and Australia have stopped accepting most US-bound shipments, citing uncertainty over customs processing and additional charges. Germany’s Deutsche Post, the UK’s Royal Mail, and two Bosnian carriers are among those confirming full or partial suspensions.
The suspension risks disrupting small-scale exporters and e-commerce platforms that rely heavily on affordable postal services to reach US consumers. Analysts say logistics costs will climb as shippers are forced to shift to private couriers, raising questions about the competitiveness of global sellers in the world’s largest retail market.
Headquartered in Bern, Switzerland, the UPU sets the framework for international mail exchanges across its 192 member states. Founded in 1874, the agency has become a critical regulator of global postal standards, though its limited enforcement powers highlight the challenges of coordinating national responses to unilateral trade measures by Washington.
