Quick Read
- The U.S. ended the ‘de minimis’ tariff exemption, effective August 29, 2025.
- India, Italy, and several European and Asian countries have suspended shipments to the U.S.
- The policy change aims to curb drug smuggling and trade imbalances.
- Major logistics companies like DHL are also halting U.S.-bound services.
- Affected customers are being offered refunds as postal networks adapt.
The global postal network has been thrown into chaos following the United States’ decision to end the ‘de minimis’ tariff exemption, a policy that previously allowed goods valued under $800 to enter the country without customs duties. Effective August 29, 2025, this abrupt policy shift has forced postal services in countries like India, Italy, and others in Europe and Asia to suspend package shipments to the U.S., citing operational challenges and lack of clarity in the new regulations.
What is the ‘De Minimis’ Exemption?
The ‘de minimis’ tariff exemption has long been a cornerstone of international trade logistics. It allowed low-value parcels, valued at $800 or less, to bypass customs duties, simplifying cross-border e-commerce. According to NY Post, the exemption was utilized for over 1.36 billion packages entering the U.S. in 2024 alone. However, the U.S. administration, under President Donald Trump, announced its termination as part of Executive Order No. 14324, signed on July 30, 2025. The move is ostensibly aimed at combating the smuggling of illicit drugs, including synthetic opioids like fentanyl, through low-value packages.
The White House also justified the decision as a measure to curb unfair competitive advantages enjoyed by overseas businesses, particularly Chinese e-commerce giants such as Temu and Shein, which have leveraged the exemption to ship directly to American consumers. The new policy mandates that all postal items, except for gifts valued under $100, will now be subject to customs duties under the International Emergency Economic Power Act tariff structure.
India Halts U.S.-Bound Postal Services
India’s Department of Posts announced on August 25, 2025, that it would temporarily suspend all postal shipments to the U.S., except for standard letters, official documents, and gifts under $100. The department cited the operational chaos triggered by the new U.S. customs requirements, which include identifying qualified carriers and establishing duty collection mechanisms. Airlines servicing U.S.-bound routes have also declared their inability to process postal cargo under the new system, exacerbating the situation.
According to The Hans India, the policy change comes amid escalating trade tensions between the two nations. President Trump has criticized India’s continued purchase of discounted Russian oil and has threatened additional tariffs on Indian imports. The disruption in postal services thus forms another chapter in the deteriorating trade relationship between New Delhi and Washington.
European Postal Services Follow Suit
European nations have similarly taken action in response to the U.S. policy shift. Italy’s Poste Italiane announced the suspension of package shipments to the U.S. starting August 23, 2025, citing the lack of clear implementation guidelines from U.S. Customs and Border Protection (CBP). France, Germany, Spain, and the UK have also paused shipments, with the UK’s Royal Mail stating that it is working to adapt its services to meet the new requirements.
Wanted in Rome reported that Poste Italiane is seeking “suitable solutions” but highlighted that the technical procedures for compliance were only published by U.S. Customs on August 15, leaving insufficient time for adaptation. The suspension affects all merchandise shipments but excludes letters and express delivery services that operate on different logistics frameworks.
Global Ripple Effects
The policy change has had far-reaching consequences, with postal services in Asia, including Singapore and Thailand, also halting shipments to the U.S. In a statement, Thailand Post described the disruption as a direct result of the sweeping nature of the new U.S. regulations. Australia Post has similarly paused certain U.S.-bound shipments, awaiting further clarification on compliance requirements.
Major logistics companies like DHL have also been affected. According to NY Post, DHL’s Deutsche Post and DHL Parcel Germany announced an immediate halt to accepting parcels destined for the U.S., citing unresolved questions about customs duty collection and data transmission to U.S. authorities. This has left businesses and consumers grappling with uncertainty, as the de minimis exemption had facilitated seamless international trade for years.
The Road Ahead
While the new U.S. customs regulations aim to address critical issues like drug trafficking and trade imbalances, their sudden implementation has disrupted global postal networks. Stakeholders, including national postal services and private logistics companies, are now racing against time to adapt to the new framework. The U.S. administration has yet to provide detailed guidelines to ease the transition, leaving many questions unanswered.
In the meantime, affected customers are being offered refunds for shipments that cannot be processed. Authorities in countries like India and Italy have expressed their commitment to restoring postal services to the U.S. as soon as possible.
The end of the ‘de minimis’ tariff exemption marks a significant shift in international trade logistics, highlighting the complexities of balancing national security concerns with global economic interconnectedness.