Postal traffic to US down by over 80% amid tariffs

Postal traffic to the United States has plummeted by over 80 per cent following the introduction of new tariffs on August 29, according to the Universal Postal Union (UPU), a United Nations agency. The drop comes after the US ended a long-standing rule that allowed small packages worth under 800 US dollars to enter duty-free. This rule, in place since 1938, helped boost low-value imports to 1.36 billion packages by 2024.It noted that 88 operators worldwide have fully or partially suspended the shipping of parcels to the US. Critics say the exemption encouraged unsafe imports and drug smuggling, while hurting US retailers.

Now, all parcels sent to the US are subject to tariffs, and postal services must collect the duties and handle customs paperwork. The UPU said many operators weren’t given enough time to prepare, causing serious disruptions. So far, 88 postal operators have fully or partly stopped shipping parcels to the US. This includes major countries like India, Mexico, Germany, France, Spain, Italy, Australia, Japan, Taiwan and Switzerland. The UPU is working on a technical solution to help restart mail deliveries to the US.

The UPU said operators didn't have enough time to prepare for the changes, or to put in place mechanisms to collect the duties and establish a link with the relevant US authorities. This caused "major operational disruptions," it added.The agency is working on "the rapid development of a new technical solution that will help get mail moving to the United States again," UPU Director General Masahiko Metoki said in a statement.