When 25 countries suspended postal shipments to the US this week, they sent a clear message: confusion over new customs rules can put global trade on ice. The Universal Postal Union (UPU), a UN agency with 192 members, confirmed the move as it races to clarify an executive order signed by US President Donald Trump. Starting August 29, the long-standing de minimis exemption allowing imports under $800 to enter duty-free will end.
In a letter to US Secretary of State Marco Rubio, UPU Director General Masahiko Metoki voiced concerns and said the agency is taking all possible measures to help members adapt. But experts warn this is just the beginning.
Wang Shuo, professor at Beijing Foreign Studies University, says small e-commerce platforms and SMEs that depend on cross-border parcels will feel the squeeze first. He notes that American SMEs cannot escape higher operating costs and will likely pass them onto consumers.
Some early warning signs are already here. Walmart products have jumped 15 percent in price, while Adidas plans a 22 percent increase on its fall footwear collection. With US import duties at their highest average level since 1934, analysts estimate each US household could lose around $2,000 a year, with working-class families bearing the brunt.
Critics argue that while the policy aims to narrow trade imbalances, the real cost falls on domestic businesses and shoppers. Wang points to Ford Motor Company where higher steel import costs forced cuts in worker benefits and jobs, challenging the promise that tariffs would protect American employment.
As the UPU and its members work to decode the new requirements, global traders and consumers alike will be watching closely. The stakes are high, and the fallout could reshape the e-commerce landscape.
Reference(s):
25 countries halt mail to U.S. over tax uncertainty: UN postal body
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