TV
India’s Department of Posts has announced a temporary suspension of all postal services to the United States starting August 25, 2025, citing changes in US customs regulations that take effect later this month. The move follows Executive Order No. 14324, issued by the US administration on July 30, which removes the duty-free exemption for goods valued up to USD 800.
Tariffs Fuel Trade Tensions
The decision comes in the backdrop of escalating trade tensions after US President Donald Trump imposed a 25% tariff on Indian goods and an additional 25% penalty linked to India’s purchase of Russian oil, effectively hiking the total tariff burden to 50%.
According to the Department of Posts, beginning August 29, all international parcels bound for the US will attract customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework. Gift items worth up to USD 100 will, however, remain exempt.
Operational Challenges Delay Shipments
The department explained that while the US Customs and Border Protection (CBP) issued initial guidelines on August 15, key processes, including identifying qualified carriers and duty collection mechanisms, remain unclear. Consequently, US-bound carriers have informed Indian authorities that they cannot accept consignments beyond August 25.
What This Means for Customers
Customers who have already booked parcels that cannot be delivered are eligible for refunds of postage fees. Authorities added that they are monitoring the situation closely and working with stakeholders to resume services at the earliest possible opportunity.
This suspension marks a significant disruption in India-US postal operations and underscores the wider economic strain between the two nations.
