India to halt postal services to the US from August 25 following Trump’s tariff actions

The Department of Posts on Saturday said it will temporarily halt all postal services to the United States starting August 25, following upcoming changes in US customs regulations set to take effect later this month.

The move comes in the wake of Executive Order No. 14324, issued by the US administration on July 30, which revoked the duty-free de minimis exemption on goods valued up to USD 800.

The suspension of postal services is set against the backdrop of growing trade tensions, after US President Donald Trump imposed a 25% tariff on Indian goods and an additional 25% penalty on imports linked to Russian oil purchases, effectively doubling the tariff burden to 50%.

In its press release, the Department of Posts announced that beginning August 29, all international postal items bound for the United States, regardless of value, will attract customs duties under the country-specific International Emergency Economic Power Act (IEEPA) tariff framework. However, it clarified that gift parcels worth up to USD 100 would continue to be exempt.

Under the new directive, transport carriers handling shipments through the international postal network or other “qualified parties” approved by US Customs and Border Protection (CBP) must now collect and remit duties.

The Department of Posts noted that although CBP issued guidelines on August 15, key aspects — including the process for designating “qualified parties” and the system for duty collection — remain unclear.

Consequently, air carriers operating to the US have informed Indian authorities that they will be unable to accept consignments after August 25 due to the absence of necessary operational frameworks.

“In light of this, the Department of Posts has decided to temporarily suspend the booking of all categories of postal articles bound for the United States from August 25, 2025, except for letters, documents, and gift items valued up to USD 100,” the press release stated.

The department stated that customers who have already booked items that cannot be delivered are eligible to claim a refund of postage. It further noted that the situation is being “closely monitored in coordination with all stakeholders,” and assured that “every effort is underway to restore services at the earliest possible opportunity.”