Postal traffic to the United States plunged over 80% after new tariffs announced by the Trump administration came into effect on August 29, the Universal Postal Union (UPU), a UN agency, said on Saturday.

It noted that 88 operators worldwide have fully or partially suspended the shipping of parcels to the US.

What is the de minimis exemption about?

US President Donald Trump's administration announced in late July that it was abolishing the de minimis exemption on small packages entering the United States from August 29. 

The exemption, which had been in place since 1938, allowed items worth $800 (€680) or less to be shipped to the US duty free.

The number of de minimis packages entering the US skyrocketed from 140 million in 2014 to 1.36 billion packages by 2024, according to the US Customs and Border Protection agency.

Critics say the flood of low-value imports hurts US retailers and that it means potentially unsafe items could flow unchecked into the country. They claim that de minimus treatment for low-value imports facilitates the shipping of fentanyl and other drugs into the United States.

What did the UPU say?

The new rules mean all parcels shipped to the US are subject to tariffs.

In addition, postal operators and transport firms are responsible for collecting the duties and processing the paperwork.

But the UPU said operators didn't have enough time to prepare for the changes, or to put in place mechanisms to collect the duties and establish a link with the relevant US authorities.

This caused "major operational disruptions," it added.

The agency is working on "the rapid development of a new technical solution that will help get mail moving to the United States again," UPU Director General Masahiko Metoki said in a statement.

The list of postal services that have announced a halt to parcel shipping for business customers to the US includes Mexico, Germany, France, Spain, Italy, Australia, Japan, Taiwan, India and Switzerland.

Edited by: Rana Taha