India Temporarily Suspends Mail Services Following Trump’s Tariff Hike

India suspended postal services to the U.S. after President Trump imposed 50% tariffs on Indian goods, ending duty-free exemptions for items under $800.

Executive Order No. 14324 ended the de minimis rule that previously allowed goods valued under USD 800 to enter the U.S. duty-free. 

Source : PTI

In a sharp escalation of trade tensions, India has suspended all postal services to the United States after Washington imposed steep tariffs on Indian exports. The move comes in response to U.S. President Donald Trump’s July 30 executive order, which withdrew duty-free exemptions and slapped a 50% tariff on a wide range of Indian goods. Beginning August 25, the Postal Department will suspend the booking and dispatch of mail to the United States, except for documents and gift parcels worth up to $100.

The US administration, through an Executive Order dated July 30, 2025, announced that from August 29 onwards, customs duties will apply to all goods entering the country valued above USD 100. Under this directive, international postal consignments and shipments handled by carriers or other entities recognised by the US Customs and Border Protection (CBP) must collect and remit the applicable duties, as per PTI.

In response, India Post has decided to temporarily halt the booking of all categories of postal articles bound for the US from August 25, 2025, except for letters/documents and gift parcels worth up to USD 100.

Following this change, carriers transporting consignments to the U.S. informed Indian authorities that they cannot handle postal shipments owing to the absence of a proper system for customs duty collection and data sharing.

"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. Consequently, US-bound air carriers have expressed their inability to accept postal consignments after 25th August, 2025, citing lack of operational and technical readiness," a statement from the ministry said, as per a report on PTI.

“These exempted items will continue to be accepted and dispatched to the US until further guidance is received from CBP and USPS,” the department clarified.