Why India, UK, Denmark are suspending postal shipments to the US

US President Donald Trump issued an executive order scrapping the trade exemption known as 'de minimis', which had permitted goods valued at up to $800 to enter the US without duty

Postal services across several countries are suspending shipments to the US this week amid growing uncertainty over new import duties that will apply to parcels from Friday.

 

US President Donald Trump signed an executive order last month eliminating the trade exemption known as 'de minimis' which had permitted goods worth up to $800 to enter the US duty-free. The removal of this exemption is now being implemented globally, after the loophole was first closed in May for parcels originating from mainland China and Hong Kong.

 

What is the ‘de minimis’ provision?

 

Previously, imported goods valued under $800 were exempt from US tariffs under the ‘de minimis’ rule. This provision allowed international e-commerce platforms such as Temu and Shein to supply inexpensive products to American customers. By combining low prices with aggressive influencer-driven marketing, Shein and Temu disrupted Western retailers’ dominance.

 

 

Around four million low-value parcels, largely from China, entered the US every day under the now-discontinued scheme.

 

Under the revised regulations, personal gifts worth under $100 will continue to be duty-free. However, all other packages will now face standard tariffs applicable to their country of origin. The policy change, which postal operators argue lacks clear implementation guidelines, has triggered concerns about delays and backlogs as services are paused.

 

                                   Political and business pressure in the US

 

American lawmakers and industry groups have long lobbied for the removal of the exemption, branding it a trade loophole that disproportionately favoured low-cost Chinese goods. Critics also argued that it facilitated the inflow of counterfeit products and illegal drugs into the US.

 

Belgium, Denmark suspend postal services to the US

 

Postal operators in Belgium, Denmark and New Zealand are among those that have already suspended parcel shipments to the US while they adapt their systems to the updated requirements. Letters and documents valued under $100 remain largely unaffected.

 

Postal services in Germany, France, Britain and India have also announced that they will follow suit in the coming days.

 

DHL, one of the world’s largest courier companies, confirmed that it will stop accepting parcels containing goods from business customers bound for the US starting Monday.

 

White House statement on ‘de minimis’ rule

 

The White House stated that ending the duty-free exemption would help tackle “escalating deceptive shipping practices, illegal material, and duty circumvention", adding that some shippers had 'abused' the rule to smuggle illicit drugs such as fentanyl into the country. It highlighted that the number of de minimis parcels surged from 134 million in 2015 to over 1.36 billion in 2024.