U.S. Postal Traffic Plummets 81% Following End of Duty Exemption for low-Value Imports
WASHINGTON – International postal traffic to the United States experienced an 81% decline on August 29, 2025, the day new rules went into effect requiring transportation carriers or U.S. Customs and Border Protection (CBP)-approved parties to collect and remit customs duties on all incoming parcels, according to the Universal Postal union (UPU). The dramatic drop signals significant disruption to global shipping and reflects challenges in implementing the policy change.
The new regulations ended a decades-old “de minimis” provision, originally added to the Tariff Act of 1930, that allowed goods below a certain value to enter the U.S. duty-free. This provision was designed to streamline trade by reducing the administrative burden of collecting duties on low-cost items.Previously, purchases under this threshold did not require customs clearance. Now, these shipments are subject to tariffs ranging from 10% to 50%, based on their country of origin.
The UPU reports that airlines and other carriers have largely indicated an unwillingness or inability to collect the required duties, and many foreign postal operators have not yet established connections with companies qualified by CBP to handle the process. This lack of preparedness has led to “major operational disruptions” in postal delivery.
The volume of low-value parcels entering the U.S. has surged in recent years, increasing from 134 million shipments annually in 2015 to approximately 1.4 billion in 2025. Prior to the rule change, U.S.Customs and Border Protection was processing over 4 million “de minimis” shipments daily, according to the White House.
The UPU had previously expressed concerns about the impact of the new rules, sending a letter to U.S. Secretary of State Marco Rubio before the measure took effect. The agency stated its members were not provided sufficient time or guidance to comply with the procedures outlined in the executive order signed by President Trump on July 30, 2025, to eliminate the duty-free eligibility of low-value goods.
The White House has clarified that incoming gifts valued at up to $100 and personal souvenirs worth up to $200 from international travel will remain exempt from duties.