Highlights:
- Suspension effective from August 25, 2025 for all parcels to the US.
- Triggered by Trump’s Executive Order 14324, ending duty-free import up to $800.
- US tariffs on Indian goods now total 50%, including penalties on Russian oil trade.
- Only letters/documents and gift items under $100 remain exempt.
- Refunds available for undeliverable items; services to resume once systems adapt.
The Department of Posts announced on Saturday that all postal services from India to the United States will be suspended temporarily starting August 25, 2025. This decision has been taken in response to sweeping changes in US customs regulations that come into effect later this month.
Trigger: US tariff moves under executive order
The suspension follows the US administration’s July 30 announcement of Executive Order No. 14324. This order eliminates the long-standing de minimis exemption, which allowed goods worth up to USD 800 to enter the US without incurring customs duties. From August 29 onward, every postal item arriving in the US, regardless of its declared value, will fall under the purview of customs duties.
Impact of Trump’s tariff imposition on India
The move comes against the backdrop of escalating trade frictions between the two countries. President Donald Trump recently announced a hefty tariff package targeting India: a 25 percent standard tariff combined with an additional 25 percent penalty for India’s ongoing purchases of Russian oil. This effectively raises the tariff burden on Indian goods exported to the US to 50 percent, sharply increasing trade tensions.
New customs rules creating bottlenecks
As per the statement, US-bound shipments will now require transport carriers or “qualified parties” approved by the US Customs and Border Protection (CBP) to collect and remit duties on behalf of the sender. While CBP issued initial guidelines on August 15, key operational details are still missing. Processes related to the appointment of qualified parties and duty collection mechanisms remain undefined.
Airlines unable to accept shipments
Due to these ambiguities, international air carriers handling postal consignments from India have conveyed that they will be unable to accept shipments destined for the US after August 25. Without a clear system in place for the collection of duties, carriers face operational challenges and financial risks, leading to the immediate suspension of services.
Partial exemptions offered
Despite the broad suspension, certain categories of mail will remain unaffected. Specifically, letters, documents, and gift items valued up to USD 100 will continue to be accepted and delivered without customs duties under the updated framework. All other postal articles, regardless of transaction value, are currently blocked until further clarity emerges.
Refunds and customer guidance
The Department of Posts has assured customers who had already sent consignments that have now been rendered undeliverable that they will be eligible for a refund of postage charges. To assist affected individuals and businesses, post offices across the country will provide guidance regarding refunds and information about the suspension order.
Monitoring the situation
In its release, the postal department emphasized that it is “closely monitoring the evolving situation in coordination with all stakeholders.” The government is reportedly in discussions with both domestic logistics operators and US authorities in an attempt to normalize services as soon as possible.
Broader trade implications
The suspension of postal services highlights the broader ramifications of worsening trade relations between India and the US. Small exporters, e-commerce sellers, and individuals who rely on the postal network to ship goods to American markets may be particularly affected. While private courier and freight services are expected to adapt faster to the new customs environment, costs are likely to surge, putting pressure on smaller businesses.
