Postal Shake-up: Global Packages to Face New US Tariff Regulations

The Universal Postal Union is working to address the issues surrounding the upcoming elimination of a U.S. tariff exemption on low-cost imports. This change, set by the Trump administration, impacts packages valued at $800 or less and has led several countries to halt shipments to the U.S.

The exemption has long allowed foreign businesses to bypass certain tariffs, leading the administration to label it as a loophole that permits illegal activities such as drug trafficking. Starting Friday, parcels entering the U.S. will be subject to customs clearance and varying tariff rates, or a flat duty rate for global mail network shipments.

The UPU is in discussions with U.S. authorities to streamline the transition and ensure postal networks are equipped to handle new customs duties efficiently. There are also efforts in place to develop systems that facilitate duty collection for shipments to the U.S.

(With inputs from agencies.)