Core Points - The Universal Postal Union reported an 81% decrease in packages sent to the U.S. on the day the U.S. suspended tax exemptions for small parcels [1] - A total of 88 postal operators have fully or partially suspended services to the U.S. until a solution is found [1] Summary by Sections U.S. Policy Changes - On July 30, President Trump signed an executive order to suspend tax exemptions for imported packages valued at $800 or less starting August 29 [1] - This change requires all applicable taxes and fees to be paid on small parcels sent to the U.S. [1] Impact on Global Postal Services - The UPU reported that the volume of packages sent from member countries to the U.S. dropped by 81% compared to the previous week on the day the executive order took effect [1] - 88 postal operators have informed the UPU of their decision to suspend part or all of their postal services to the U.S. until a resolution is reached [1] Technological Solutions - The UPU is developing a new technological solution to assist postal operators in resuming services to the U.S. [1] - Starting September 5, postal operators can access a cost calculator through an API to help customers calculate and pay the necessary duties for sending packages to the U.S. [1] Organizational Background - The Universal Postal Union is a specialized agency of the United Nations responsible for international postal affairs, headquartered in Bern, Switzerland, with 192 member countries [1]

Group 1 - Mexico has announced the suspension of all postal and package delivery services to the United States effective immediately due to new U.S. regulations on small package imports [1] - The U.S. will stop providing tax exemptions for imported packages valued at $800 or less starting August 29, requiring all small packages to pay applicable taxes [1] - The suspension will last until a new operational process is clarified, with ongoing dialogue between Mexico and U.S. authorities to establish a mechanism for orderly service restoration [1] Group 2 - As of August 26, 25 countries have suspended package deliveries to the U.S. due to uncertainties related to the new U.S. regulations [1] - South Korea has also suspended EMS services to the U.S., with users now required to use UPS for package delivery, incurring customs duties [2] - Several European countries and others like Australia, India, and Japan have similarly announced suspensions of package deliveries to the U.S. in response to the new customs measures [2] Group 3 - An analysis report from the Cato Institute indicates that the U.S. government's cancellation of tax exemptions for small imports will significantly harm low-income groups and complicate logistics for transport companies [2]

Core Insights - Japan is considering reviewing its tax exemption policy for small parcels, aiming to strengthen scrutiny on cross-border e-commerce tax channels, joining a global trend [1][3] - The Japanese government is discussing potential changes to the current exemption for imported goods valued under 10,000 yen (approximately 500 RMB), which may include a 10% consumption tax on small imports from platforms like Shein and Temu [3] Group 1 - The Japanese Cabinet Office has discussed the implications of the small parcel exemption policy, focusing on fair competition and the risk of illegal drugs and counterfeit goods entering Japan [3] - The Ministry of Finance plans to modify the tax system next year, with detailed new tax policies expected by 2026 [3] - In 2022, Japan imported approximately 169.66 million small parcels valued at 425.8 billion yen, marking a fivefold increase over the past five years, with Shein and Temu being significant contributors [3] Group 2 - Other countries, including the United States and several European nations, are also considering adjustments to their small parcel tax exemption policies [4] - The U.S. has recently ended its tax exemption for small parcels valued under $800 from China, leading to price increases for products from Shein and Temu [4] - The European Union has proposed to eliminate the exemption for parcels under 150 euros by 2027-2028, while the UK and France are also reviewing their respective small parcel tax rules [4]