In response to the new U.S. tariffs, India has suspended postal services to the United States, effective August 25th. The Postal Department stated that efforts to restore services soon are underway.
Trump Tariff: Amidst escalating tariff disputes with the United States, India has taken a significant step. The Indian Postal Department has announced that postal services to the United States will be suspended from August 25, 2025. This move is a result of recent changes in U.S. customs regulations.
New Tariff Order from the Trump Administration
On July 30, 2025, U.S. President Trump issued a new order. Under this order, the duty exemption on goods worth up to $800 has been eliminated. Previously, low-value goods could be sent to the U.S. without duty, but this will no longer be possible.
Impact of the New Customs Duty
From August 29, 2025, customs duties will apply to all goods sent to the United States, regardless of their value. However, some exemptions will remain. Documents and gift items with a value of up to 100 U.S. dollars will not be subject to duty. This change has also affected international postal services.
Rules under the IEEPA Act
This new rule will be implemented under the International Emergency Economic Powers Act (IEEPA). U.S. Customs and Border Protection (CBP) issued a directive on August 15, 2025, stating that transport carriers and qualified parties must pay duties on international postal shipments.
Previously Booked Postal Material
Customers who have already booked postal material for sending to the U.S. and are now unable to do so due to these new circumstances have recourse. Such customers can claim a refund of their postal charges.
India's Response
In response to this situation, India has decided to suspend postal services to the United States. The Indian Postal Department states that every possible effort is being made to restore postal services to the United States as soon as possible. The impact of this decision will be visible on trade between the two countries and on the general public. E-commerce companies and small businesses, in particular, will now face difficulties in shipping to the United States. Small items previously sent without duty will now be subject to customs duties.
