India Temporarily Halts Postal Services to US Amid New Customs Rules and Trade Tensions

The Department of Posts on Saturday announced a temporary suspension of all postal services to the United States starting August 25, citing upcoming changes in US customs regulations set to take effect later this month.

The move comes in response to Executive Order No. 14324, issued by the US administration on July 30, which revokes the duty-free de minimis exemption for goods valued under \$800. This means that all international packages sent to the US—regardless of their value—will now be subject to customs duties, with a few exceptions.

In a press statement, the Department of Posts said that from August 29, all postal items headed to the US will fall under the country-specific International Emergency Economic Powers Act (IEEPA) tariff structure. However, gift items valued up to \$100 will continue to be exempt from duties.

The announcement comes at a time of growing trade friction between the two countries. US President Donald Trump recently slapped a 25% tariff on Indian goods, along with an additional 25% penalty for India’s ongoing imports of Russian oil, pushing the total tariff burden to 50%.

The new US customs rules also require that duties be collected and remitted by transport carriers or other “qualified parties” approved by US Customs and Border Protection (CBP). But according to the Department of Posts, key parts of the implementation process—including identifying these “qualified parties” and establishing how duties will be collected—are still unclear. CBP issued preliminary guidelines on August 15, but much remains unresolved.

As a result, US-bound air carriers have informed Indian authorities that they won’t be able to accept shipments after August 25, citing a lack of operational readiness to comply with the new requirements.

“In view of the above, the Department of Posts has decided to temporarily suspend booking of all types of postal articles destined for the USA with effect from August 25, 2025,” the statement said. Exceptions will be made for letters, documents, and gift items valued at \$100 or less.

Customers who have already sent items that cannot be delivered under the new rules will be eligible for a refund of their postage costs. The department added that it is actively working with all stakeholders to monitor the situation and restore full postal services as soon as possible.