India temporarily suspends postal services to the US

August 25, 2025 Hot from the Oven Valli Sarvani

India temporarily suspends postal services to US amid tariff changes

The Department of Posts has declared a temporary halt to all postal services to the United States effective August 25, 2025.

This decision comes in response to upcoming changes in US customs regulations, which are scheduled to be implemented later this month.

The suspension follows Executive Order No. 14324, issued by the US administration on July 30, which withdraws the duty-free exemption (de minimis) on goods valued up to $800.

Under the new rules, all postal items sent to the US, regardless of value, will now be subject to customs duties.

In a press release, the postal department said that from August 29, the US will begin applying duties based on the International Emergency Economic Powers Act framework. However, gift items worth up to $100 will remain duty-free.

The changes come amid rising trade tensions. Recently, President Donald Trump imposed a 25% tariff on Indian goods and an additional 25% penalty on Indian imports linked to Russian oil, raising the total tariff burden to 50%.

The new US order requires transport carriers and “qualified parties” approved by US Customs and Border Protection (CBP) to collect and remit duties.

But CBP’s August 15 guidelines leave key parts, such as the designation of these parties and collection mechanisms, unclear.

As a result, air carriers operating to the US have notified Indian authorities that they will be unable to handle consignments beyond August 25, citing a lack of clarity on operational procedures and requirements.

Accordingly, the Department of Posts will halt the booking of all postal articles to the US, except letters/documents and gift items under $100. Customers who have already booked affected shipments may request postage refunds.

The department assured it is actively monitoring the situation and coordinating with relevant stakeholders to resolve issues and restore full postal services to the United States at the earliest opportunity.

Image Credit: Bhaskaranaidu, CC BY-SA 4.0, via Wikimedia Commons