The Government of India has announced the temporary suspension of postal services to the United States, effective from Monday, August 25, 2025, following operational constraints triggered by new U.S. customs rules.

According to the Ministry of Communications, the suspension applies to all types of postal articles, except for letters, documents, and gift consignments valued up to $100, which will continue to be accepted and dispatched.

This step comes in response to the refusal of U.S.-bound air carriers to carry postal cargo owing to a lack of clarity in compliance processes under fresh American customs regulations.

The situation arises from an executive order issued by the U.S. administration on July 30, 2025, which mandates customs duties on imported goods valued above $100, effective August 29.

Therefore, beginning August 29, 2025, all goods sent to the US, regardless of their value, will be subject to customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework.

The directive also places responsibility on international transport carriers within the postal system to collect and remit customs duties on such shipments.

Despite partial guidelines issued by U.S. Customs and Border Protection (CBP) on August 15, critical operational aspects—such as the mechanism of designating "qualified parties" to oversee duty collection and the channels for remittance—remain undefined.

This lack of procedural clarity has created uncertainty for carriers, prompting them to withhold acceptance of postal consignments bound for the U.S., citing the absence of readiness in both operational and technical systems.

In light of these challenges, India’s Department of Posts has opted for a precautionary suspension, emphasizing that it is a temporary measure intended to safeguard against disruptions or compliance issues.

The Ministry has further clarified that customers who have already booked postal items falling outside the exempted categories—such as commercial goods or high-value parcels exceeding $100—will be entitled to claim a refund of postage charges. The decision underscores the cascading effect of evolving U.S. trade and customs rules on global postal and logistics networks.

For now, the Department of Posts has assured that it is in close communication with U.S. authorities and monitoring developments carefully. The Ministry conveyed that “every effort is being made to normalise services at the earliest possible opportunity,” signalling that operations could resume once CBP and USPS provide definitive mechanisms for implementation.

However, with the new U.S. import tariffs set to come into effect from August 29, the immediate outlook suggests continued uncertainty for businesses and individuals reliant on the postal channel for merchandise shipments to the U.S.

The impact of this suspension will be felt most acutely by small exporters, e-commerce players, and individuals sending high-value consignments, as postal channels are often the most cost-effective method for such shipments.

By contrast, courier operators and larger logistics providers, who already have dedicated customs-compliance systems, may be able to handle the new requirements more readily.

Nonetheless, the disruption to India Post’s U.S.-bound services highlights the broader implications of unilateral customs policy changes in cross-border trade and logistics, reinforcing the need for timely coordination between postal administrations and regulatory agencies.

The suspension of India’s postal services to the United States—though categorized as temporary—reflects significant uncertainty stemming from new U.S. customs regimes governing duty collection and enforcement on imports exceeding $100 in value.

Stakeholders across trade, e-commerce, and individual customers are now compelled to await further clarity from American authorities to see when and how India Post will be able to restore normal operations.

The expiration of the US 'de minimis' tariff exemption on low-value packages has led European postal services to suspend shipments. This comes after India's US postal services took a similar step amid Donald Trump's new trade policy. 

After India's Department of Posts, on August 23, announced that it will temporarily suspend all types of postal articles to the United States amid President Donald Trump's 50 per cent tariffs on India, European postal services are now also pausing deliveries to the US as tariff exemptions on their deliveries come to an end, AP reported.

Based On TOI Report