India temporarily suspends postal services to US after Donald Trump’s tariff hike

India’s Department of Posts on Saturday decided to temporarily suspend all types of postal articles destined for the United States due to new American duty rules, after President Donald Trump’s 50% tariffs on Indian goods.“The Department of Posts has taken note of the Executive Order No. 14324 issued by the US Administration on 30th July, 2025, under which the duty-free de minimis exemption for goods valued up to $800 will be withdrawn with effect from 29th August, 2025,” an official release from the Ministry of Communications read.

“Consequently, all international postal items destined for the USA, regardless of their value, shall be subject to customs duties as per the country-specific International Emergency Economic Power Act (IEEPA) tariff framework. However, gift items up to the value of USD 100 shall continue to remain exempt from duties.”

Temporary Suspension of Postal Services to the United States of America

Read here: https://t.co/rGBjH4fXcW@Pib_india @IndiapostOffice @JM_Scindia @Pemmasanionx

— PIB_INDIA Ministry of Communications (@pib_comm) August 23, 2025

The statement said that transport carriers delivering shipments through the international postal network, or other “qualified parties” approved by the US Customs and Border Protection (CBP), are required to collect and remit duties on postal shipments. However, while CBP issued certain guidelines on 15th August, 2025, several critical processes relating to the designation of “qualified parties” and mechanisms for duty collection and remittance remain undefined, the ministry said.

The Department of Posts said US-bound air carriers have expressed their inability to accept postal consignments due to a lack of operational and technical readiness. Hence, it decided to temporarily suspend booking of all types of postal articles destined for the USA, with immediate effect from August 25, with the exception of items up to $100 in value.

“The Department is closely monitoring the evolving situation in coordination with all stakeholders, and every effort is being made to normalise services at the earliest possible opportunity. Customers who have already booked articles that cannot be dispatched to the USA due to these circumstances may seek a refund of postage,” the release said.

The suspension of postal services comes against the backdrop of escalating trade tensions between India and the US, after President Donald Trump imposed a 50% tariff on Indian goods, including an additional 25% penalty for purchasing Russian oil.

India had slammed the decision as “unfair, unjustified and unreasonable” and that it will “take all actions” necessary to protect national interests.

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