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Home > Explainer > Why Are Countries Worldwide Suspending Postal Services To The US? De Minimis Rule Explained

Why Are Countries Worldwide Suspending Postal Services To The US? De Minimis Rule Explained

Countries including India, the UK, Italy, France, and Germany have suspended postal services to the US after Donald Trump revoked the long-standing tariff exemption on low-value imports, creating uncertainty over new duty collection rules. Postal operators say shipments will remain halted until Washington clarifies the process.

Published By: Zubair Amin
Last updated: August 24, 2025 10:40:20 IST

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Postal departments in several countries including Italy, the UK, India, France, and others have suspended postal services to the US following confusion over President Donald Trump’s decision to revoke a long-standing tariff exemption for low-value imports. The move comes after Trump signed an executive order in July, ending the de minimis exemption, which had allowed goods worth under $800 to enter the US duty-free. The exemption is set to expire on August 29, 2025, leaving postal operators uncertain about the new tariff collection process.  

PostEurop, which represents European postal operators, issued a statement warning that its members may be “constrained to temporarily restrict or suspend the shipping of goods via the postal networks to the USA” until further clarity is provided.  

India Suspends Postal Services To US

India has also suspended postal services to the US, citing the lack of clarity around Trump’s order.

The Ministry of Communications said the directive requires “qualified parties” approved by the US to collect and remit tariffs, but added that “several critical processes relating to the designation of ‘qualified parties’ and mechanisms for duty collection and remittance remain undefined.”  

What Germany And Italy Said

Germany’s Deutsche Post announced temporary restrictions on shipments to the US for both private and business customers. The update was shared on the company’s official X account.  

Poste Italiane confirmed that from August 23 it will suspend all shipments containing goods to the United States.  

“In the absence of different instructions from US authorities … Poste Italiane will be forced, like other European postal operators, to temporarily suspend acceptance of all shipments containing goods destined for the United States,” the company said on Friday. Shipments not containing merchandise will continue as normal.  

Royal Mail of UK Also Implements Restrictions  

The UK’s Royal Mail also announced it would halt shipments to the US, ensuring parcels already in transit arrive before tariffs take effect. It further clarified that items originating in the UK worth over $100 will now attract a 10 percent duty.  

In the Netherlands, PostNL spokesperson Wout Witteveen told the Associated Press that the Trump administration is moving forward with the duties despite not having a proper collection system in place.  

He advised customers: “If you have something to send to America, you should do it today.”  

What is Austria, France Doing?

Austrian Post announced that the last acceptance of commercial shipments to the US, including Puerto Rico, would take place on Tuesday, after which services would be suspended.  

France’s La Poste also suspended shipments, criticizing the US for failing to provide adequate preparation time for postal operators.  

“Despite discussions with U.S. customs services, no time was provided to postal operators to reorganise and ensure the necessary computer updates to conform to the new rules,” La Poste said.  

What is Trump’s Executive Order 14324 ?

The suspensions follow Executive Order No. 14324, signed on July 30, 2025, which ended the near century-old de minimis exemption. The policy previously allowed goods valued at $800 or less to enter the US without customs duties.  

Under the new system, tariffs will be charged based on trade relations with the US:  

Countries facing tariffs of 15 percent or less – an extra $80 per parcel.  
Countries facing tariffs between 16 and 25 percent – an extra $160 per parcel.  
Countries facing tariffs above 25 percent – an extra $200 per parcel.  

This means Indian goods shipped to the US could face duties higher than their actual value, particularly for low-cost parcels.  

Letters, documents, and personal gifts worth under $100 remain exempt. However, companies like DHL have warned that parcels labeled as “gifts” will face stricter checks to prevent misuse.  

What is De Minimis Rule?

The de minimis exemption, derived from the Latin phrase “too small to be considered,” was first introduced in the 1930s and adjusted several times since.

In 2016, former President Barack Obama raised the threshold from $200 to $800, boosting small businesses, e-commerce platforms, and family-run exporters.  

Earlier this year, Trump excluded China and Hong Kong from the exemption as part of his trade restrictions on low-cost Chinese imports.

The new executive order now extends the removal to all countries, effective August 29, 2025, making almost all low-value parcels subject to customs duties in the United States.  

Also Read: India Halts Postal Shipments To The US: What’s Behind The Sudden Suspension?

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