Postal Traffic to the United States Dips More Than 80%

The UN’s Universal Postal Union (UPU) recently released a report that postal traffic into the United States has dipped more than 80% following the Aug. 29 suspension of the duty-free de minimis exemption, which allowed small packages worth $800 or less come into the country without having tariff penalties imposed. With the end of that exemption, traffic has come to an alarming, screeching halt from international shippers. 

In a statement, UPU Director General Masahiko Metoki noted, "The UPU has in its mission the responsibility to guarantee the free circulation of postal items over a single postal territory. We're working to uphold that responsibility with the rapid development of a new technical solution that will help get mail moving to the United States again.” 

The problem comes from the fact that, for the first time, carriers and customs entities are now responsible for calculating — and collecting — all applicable tariffs, regardless of size or value. And, the UPU statement notes, “carriers, such as airlines, signaled they were unwilling or unable to bear this responsibility and postal operators had not yet established a link to the list of CBP (U.S. Customs and Border Protection) qualified parties, causing major operational disruptions.” 

Further, 88 global postal operators have noted they have suspended some or all postal services into the United States until solutions are implemented, leading to even further and widespread disruptions. 

NPR reported that it has reached out to the White House for comment, but as of publication, it has not yet gotten a response.  

But what does this mean for the printing industry? 

While most PSPs have probably focused on the impact tariffs are having on things like the cost of supplies or equipment, difficulties getting mail in and out of the country could pose huge problems for those with global customers. For example, instead of contracting with a U.S.-based commercial printer for all of their printing needs, a brand might choose to only give them the U.S.-based portion of the campaign to print and mail locally, and all of the international business — including to Canada and Mexico — will go to printers local to those countries.  

Short term, it might only be a small hiccup, especially if policies are put into place to help mitigate the current postal chaos and get the mail flowing across borders swiftly and efficiently again. But in the long term, if no immediate changes or updates are made, it could mean a permanent loss of business for many printers that could impact profitability.  

For printers that only serve small local markets, postal uncertainties will be the least of their concerns and the least likely to impact operations. But for many printers that have sought to expand their customer base and applications to a more global scale, this has the potential to be a devastating blow. 

Stay tuned as we’ll keep an eye on and report any updates or changes as the situation continues to evolve over time — whether that is news that things have rapidly returned to business as usual, or news that postal challenges remain very much part of the new way of doing business.