International mail deliveries to the United States have plummeted after Washington scrapped a tax exemption on small packages, the Universal Postal Union (UPU) said on Saturday.
According to the UN agency, postal traffic to the US dropped by 81 percent on August 29, the day the new rules took effect, compared to the previous week. Eighty-eight postal operators worldwide — including Germany’s Deutsche Post, Britain’s Royal Mail, and services in Australia, France, India, Italy and Japan — have either suspended or sharply curtailed deliveries.
The disruption follows the Trump administration’s July decision to abolish the exemption, long used by foreign operators to send low-value parcels into the US market. Officials in Washington argued the measure was necessary to protect American businesses and curb unfair competition.
“The UPU is working on the rapid development of a new technical solution that will help get mail moving to the United States again,” said director general Masahiko Metoki in a statement.
Based in Bern, Switzerland, the UPU was founded in 1874 and now has 192 member states. It coordinates the global exchange of mail and sets common standards for international postal services.
The sweeping suspension has already left online retailers and consumers facing delays and rising costs, with the scale of disruption expected to grow until a replacement system is in place.
