The Department of Posts announced on Saturday that it will stop all postal services to the United States from August 25. The step follows new US customs rules that will come into force later this month.
Temporary Suspension of Postal Services to the United States of America
— PIB India (@PIB_India) August 23, 2025
Department of Posts has taken note of the Executive Order No. 14324 issued by the U.S. Administration on 30th July, 2025, under which the duty-free de minimis exemption for goods valued up to USD 800 will…
Reason behind the suspension
The move stems from Executive Order No. 14324, issued by the US government on July 30. This order removes the duty-free exemption for goods valued up to USD 800. As a result, shipments sent through the international postal system will now face customs duties.
What the new order means
From August 29, every parcel sent to the US will attract duties under the International Emergency Economic Power Act (IEEPA) framework. However, the exemption for gift items worth up to USD 100 will continue.
The order also directs transport carriers and other “qualified parties” to collect and remit duties. But the US Customs and Border Protection (CBP) has not yet clarified how these parties will be identified or how the duty collection process will work.
Airlines step back
Because of this uncertainty, US-bound airlines informed Indian officials that they cannot carry consignments after August 25. They cited lack of operational readiness as the main reason.
India’s postal decision
Reacting to the development, the Department of Posts issued a statement: “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 25th August, 2025, except letters/documents and gift items up to USD 100 in value.”
The department also advised customers who have already booked such consignments to apply for refunds. It added that officials are tracking the situation closely with all stakeholders and are working to restore services as soon as possible.
Trade tensions add pressure
This suspension also reflects the broader strain in India-US trade relations. Recently, US President Donald Trump imposed a 25 percent tariff on Indian goods. In addition, he placed another 25 percent penalty because of India’s Russian oil purchases. Together, these measures have raised the total tariff burden to 50 percent.