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25 Nations Halt Shipments to US After Trump Ends Duty-Free Rule

UPU warns global trade disruption as Washington scraps $800 customs exemption
Published: Aug 26, 2025 | 11:08 PM

GENEVA: A United Nations agency overseeing the global postal sector said on Tuesday that 25 of its member states have suspended goods shipments to the United States following Washington’s decision to scrap a customs tax exemption on small packages.

The development underscores how tariff measures introduced by President Donald Trump’s administration are rippling through global trade and services, with economists warning the White House’s approach risks pushing both the US and the global economy into recession.

The Universal Postal Union (UPU), a Switzerland-based body representing 192 member states, said it had conveyed concerns about the disruption in a letter sent to US Secretary of State Marco Rubio on Aug 25. While the agency did not identify the affected countries, Australia, Norway, Switzerland and several others have already confirmed suspensions publicly.

The suspension follows last month’s US announcement that it would end the global “de minimis” exemption — which allowed duty-free entry and minimal paperwork for international shipments under $800 — effective Aug 29.

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On Monday, President Trump further escalated trade tensions, telling reporters that unless China provided rare earth magnets, “we have to charge them 200 per cent tariff or something.”

Meanwhile, Indian exporters braced for a sharp fall in US orders after trade talks between Washington and New Delhi collapsed, with steep new tariffs on Indian goods taking effect from Wednesday, aggravating tensions between the two strategic partners.

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