On August 29, 2025, global mail services will hit pause after the government ended its long-standing duty-free “de minimis” loophole. Due to this change, major postal carriers have been forced to suspend U.S.-bound parcels. Millions of consumers are now unsure about their online orders as a result of this.
What’s the “De Minimis” Exemption?
The “de minimis” threshold eliminated duties and customs paperwork for packages under $800 under U.S. trade law. This regulation sparked a surge in inexpensive online shopping, particularly from Chinese retailers like Shein and Temu. In 2024, more than $1.36 billion packages totaling $64.6 billion were imported into the United States under this exemption.
The change in this policy aims to address the misuse of the “de minimis” exemption by limiting unchecked imports of cheap goods and illicit items into the U.S.
Postal Services Hit Paused
Global postal operators have said that the abrupt change has now allowed them to update their systems. As a result, they have suspended U.S. deliveries in the meantime until they can comply with new customs requirements. Here are some of the postal services that have paused their services:
- Royal Mail (UK) paused shipments on Tuesday and will resume when systems are ready.
- La Poste (France) has paused U.S. parcels temporarily and criticized the government for failing to provide details in advance.
- New Zealand has declared all parcel deliveries to the U.S. as temporarily unavailable until further notice.
- Deutsche Post and DHL Germany have suspended shipments for business customers, citing unresolved key questions over how duties will be collected.
- Other postal providers in Belgium, Denmark, Sweden, Austria, and Italy have also paused shipments.
- Asian carriers, including India Post and SingPost, have also suspended shipments.
Despite the suspensions by all these postal services, letters and documents are not affected. Only parcels containing goods have been suspended under the new rules.
DHL and Private Couriers
Global courier giant DHL has announced that it will stop accepting parcels containing goods from business customers meant for the U.S. starting Monday. The company cited the following unresolved issues:
- Who collects customs duties.
- What additional data will be required.
- How that data will be transmitted to U.S. Customs and Border Protection.
DHL has, however, confirmed that it will continue delivering private parcels labelled as gifts under $100.
Meanwhile, Etsy, an online marketplace, has notified its sellers that it will suspend shipping label purchases from carriers such as Canada Post, Royal Mail, Australia Post, and Evri bound for the U.S. until the couriers adjust.
How the New Rules Will Hit Consumers and Global Retailers
Businesses may be more significantly impacted by the abrupt change. Industry analysts predict that as a result of these changes, businesses will need to:
- Take into account U.S.-based fulfillment centers and modify prices to reflect new tariffs.
- Use CBP’s ACE systems to submit customs entries.
- Ensure that all parcels have the right paperwork to prevent fines, which can reach $10,000 for each infraction.
Why the U.S. Ended the “De Minimis” Loophole Worldwide
At first, the U.S. revoked the “de minimis” exemption for mainland China and Hong Kong in May. The aim was to limit the entry of cheap goods from Temu and Shein into the U.S. However, in July, the White House extended the ban globally but fast-tracked a Congressional plan to ban the exemption by 2027.
The Trump administration argues that the change is long overdue, citing surges in “de minimis” shipments from $134 million in 2015 to $1.36 billion in 2024. Although China is the largest source of these shipments, Mexico, Canada, and Europe also contribute a significant share.
Postal services providers warn that without clear procedures, the U.S. could encounter weeks or even months of delivery backlogs that could be frustrating to customers.
Next Steps for Global Deliveries
The Trump administration has insisted that the rule will remain in force despite the global pushback. Postal services providers are liaising with U.S. authorities to adopt their systems. Some, like Royal Mail, expect to resume deliveries within days, while others warn that suspensions could last much longer.