Global Mail on Hold: 25 Countries Hit Pause on US Postal Services Over Tariffs

In a significant escalation of trade tensions, at least 25 countries have suspended outbound postal services to the United States, citing uncertainty over new US tariff regulations, the United Nations’ Universal Postal Union (UPU) confirmed. The move comes after the US government announced it would abolish the longstanding "de minimis" tax exemption on small packages entering the US, effective from August 29, 2025. The abrupt change has disrupted global postal flows and sparked widespread alarm among postal operators worldwide, impacting cross-border e-commerce and international trade.

 

Details of the Suspension:

The suspensions affect package deliveries—including parcels from countries like France, the UK, Germany, Italy, India, Australia, and Japan—as many postal services halted accepting US-bound consignments.

 

Letters, documents, and gifts valued at or below $100 remain exempt from tariffs and continue to be accepted for US delivery. However, packages exceeding this threshold face tariff rates, including 15% for EU goods and a steep 50% for those from India.

 

The UPU cited “uncertainties specifically related to transit services” and incomplete clarifications on US operational requirements as the primary reasons behind these suspensions.

 

Postal operators are required to collect customs duties upfront from senders on behalf of US Customs and Border Protection, a process whose protocols remain unclear for many.

 

Implications for Global Postal Services and E-Commerce:

The sudden policy shift and lack of operational clarity have forced postal carriers globally to pause their US shipments, pending more concrete implementation guidelines.

 

This disruption poses particular challenges for the booming cross-border e-commerce sector, which relies heavily on affordable, reliable international parcel delivery.

 

Logistics companies like DHL have warned of increased checks even on exempted shipments to prevent misuse of the system for commercial goods.

 

India’s communications ministry acknowledged the ambiguity around designating “qualified parties” responsible for duty collections and the remittance process, underscoring the operational difficulties faced by postal services.

 

UPU’s Role and Response:

The Universal Postal Union, established in 1874 and comprising 192 member nations, has taken proactive steps to engage US authorities, including sending a letter to US Secretary of State Marco Rubio expressing collective concerns regarding the trade disruptions.

 

The UPU emphasized the need for longer timelines and better communication to enable postal operators to develop sustainable solutions minimizing adverse impacts on global postal networks.

 

It is currently working to facilitate coordination among member countries to weather the ongoing logistical challenges.

 

Country-Specific Impact:

Prominent countries publicly announcing service suspensions or modifications include Australia, Japan, Taiwan, Singapore, Thailand, and several European nations.

 

India temporarily suspended bookings for all postal articles to the US valued above the exempt limit, pending agreement on duty collection mechanisms.

 

Several countries continue to process shipments subject to revised tariffs, creating a patchwork of postal service availability and delays.

 

Freight and courier operators like FedEx have clarified that their express services are not affected by the postal service suspensions.

 

Economic and Trade Repercussions:

Analysts warn the tariffs and subsequent postal suspensions may increase costs considerably for consumers and businesses, encouraging a reevaluation of cross-border shipping strategies.

 

The changes could incentivize rerouting of goods through private express services, potentially burdening these logistics channels.

 

Long-term solutions sought by the UPU aim to harmonize customs duties and streamline collections in a manner less disruptive to international trade.

 

Conclusion:

The suspension of postal services by 25 countries in response to US tariff revisions exposes the fragility and interdependence of global mail and e-commerce systems. While aimed at protecting domestic economic interests, these tariffs have triggered a widespread postal standstill with far-reaching consequences for international trade and consumer access to global goods. Robust dialogue, clearer operational frameworks, and international cooperation remain critical to mitigating this unprecedented challenge.

 

Sources: Hindustan Times, Times of India, Reuters,  News18, Channel News Asia, NDTV