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08 September 2025

Daily Newsletter

08 September 2025

US ends duty-free rule, small parcel imports collapse

The US has scrapped its $800 duty-free import rule, resulting in an 81% drop in incoming parcels as foreign postal operators halt shipments over tariff collection.

Mohamed Dabo September 08 2025

Postal traffic to the United States has fallen sharply after the Trump administration removed the long-standing tariff exemption on imported goods valued under $800.

The Universal Postal Union (UPU) reported an 81% drop in parcel volumes entering the country, as postal services and carriers struggle to adapt to the new customs requirements.

Global postal operators suspend services

Eighty-eight postal operators across the world have suspended some or all shipments to the US, citing difficulties in collecting and remitting customs duties on low-value parcels.

Airlines and logistics providers have also indicated they are not prepared to handle the additional responsibility of duty collection.

The sudden suspension has led to major disruptions in cross-border e-commerce and international postal flows.

End of de minimis rule for imports

The de minimis exemption, in place since 1938, allowed goods worth $800 or less to enter the US without customs duties.

The new rules, effective from 29 August 2025, require that all imported parcels be assessed and taxed according to their origin country’s tariff rate, ranging between 10% and 50%.

The White House stated that gifts up to $100 and personal souvenirs worth up to $200 from overseas trips remain exempt. Officials argue the exemption had become a loophole exploited by foreign sellers to bypass tariffs and by criminal groups to ship illegal goods.

Impact on retail and international trade

The removal of the exemption is expected to have significant consequences for global retail, particularly for small businesses and online marketplaces that relied on shipping low-cost goods to American consumers.

The UPU has acknowledged that member states were not given sufficient time to prepare for the new system, prompting widespread service suspensions.

In the meantime, the agency is introducing measures to help postal operators calculate and process customs duties, but uncertainty remains for retailers, carriers and consumers awaiting clarity on how trade with the US will be managed under the new rules.

Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData’s Strategic Intelligence here.

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