In a move that underscores rising trade frictions with Washington, the Department of Posts on Saturday announced a temporary suspension of postal services to the United States starting August 25. The decision follows changes in US customs rules that eliminate the long-standing duty-free allowance for low-value imports.
According to a PIB statement, the suspension comes in response to Executive Order No. 14324, issued by the US administration on July 30, 2025, under which the duty-free de minimis exemption of up to USD 800 will be scrapped from August 29. Once enforced, all postal items sent to the US, regardless of value, will attract customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework. Gift items worth up to $100, however, will continue to remain exempt.
The order also mandates that transport carriers or “qualified parties” approved by US Customs and Border Protection (CBP) must collect and remit duties on incoming postal shipments. But with critical processes such as the designation of qualified carriers and duty collection mechanisms still undefined, US-bound air carriers have said they are unable to handle postal consignments beyond August 25.
As a result, India Post has suspended the booking of all categories of articles bound for the US - except letters, documents, and gift items up to $100 in value. The Department said customers who have already booked parcels may claim refunds, while it works with US authorities and airlines to resolve the issue.
{{/usCountry}}As a result, India Post has suspended the booking of all categories of articles bound for the US - except letters, documents, and gift items up to $100 in value. The Department said customers who have already booked parcels may claim refunds, while it works with US authorities and airlines to resolve the issue.
{{/usCountry}}The suspension, though described as temporary, adds a fresh dimension to the ongoing trade tensions between India and the US.
US President Donald Trump — eager to slash the US’s trade deficit with India and, simultaneously, to gain traction in discussions with Russian counterpart Vladimir Putin to end the conflict in Ukraine — has demanded that India stop “fueling the war machine” with purchases of discounted Russian barrels. He threatened earlier this week to impose punitive levies on top of a planned 25% that kicks in later this week. Washington confirmed an extra 25% would be added within 21 days.
The Department of Posts said it “deeply regrets the inconvenience” to customers but assured that “all possible measures are being undertaken to resume full services to the USA at the earliest.”