International postal services began suspending shipments to the US on Friday, with almost 30 countries joining by Tuesday.
The Details: Suspensions of services are affecting goods valued under $800 following an executive order signed by President Donald Trump on July 30. The order will suspend duty-free de minimis treatment for all countries by August 29. De minimis is a Latin term referring to items too trivial or minor to merit consideration. De minimis exemptions allow goods valued under $800 to be excluded from duties, taxes, or lengthy customs checks. Trump’s order cited issues with illicit substances being hidden in shipments, national security, and trade deficits as reasons for the suspension. Starting August 29, packages will be subject to fees in accordance with the tariff rates applied to the country of origin. Letters and personal gifts worth under $100 will remain exempt, with some countries allowing shipment of these items and others halting all shipments to the US temporarily.
For Context: During Trump’s campaign, he promised to crack down on fentanyl dealers, and since entering office has taken various strides to stop the illicit substance from entering the US. Trump also ran on promises of implementing tariffs on countries to reduce the US trade deficit and bring manufacturing back to the US, and announced new tariff rates for nearly 70 countries in August. Some economists, however, have expressed concern over the possibility of tariff-related costs being passed on to US consumers through increased prices.
