India suspends all postal services to the U.S. from August 25 after Trump administration scraps duty-free imports, slaps a 50% tariff on India, and enforces new customs rules.
In a dramatic escalation of U.S.-India trade tensions, the Department of Posts on Saturday announced a temporary suspension of all postal services to the United States starting August 25. The move follows Executive Order No. 14324, signed by U.S. President Donald Trump, which eliminates the long-standing duty-free exemption for imports valued up to USD 800.
Under the new rules, effective August 29, every international parcel bound for the U.S. will face customs duties under the International Emergency Economic Power Act (IEEPA). Only gift shipments worth up to USD 100 will remain exempt.
The changes arrive on the heels of Trump’s aggressive trade measures: a 25% tariff on Indian goods and an additional 25% penalty for importing Russian oil, bringing the total tariff burden to a punishing 50%.
Air carriers informed Indian authorities they are unable to handle consignments under the new framework, citing unclear guidelines from U.S. Customs and Border Protection (CBP) on how “qualified parties” must collect and remit duties.
As a result, India has frozen all bookings of parcels, merchandise, and commercial consignments to the U.S., except for letters, documents, and gifts up to USD 100. Customers with undeliverable items will be eligible for refunds.
The postal department assured it is “closely monitoring the evolving situation” and pledged to restore normal services as soon as possible.
The suspension underscores the far-reaching fallout of Trump’s protectionist policies — hitting not just trade giants but also everyday citizens relying on cross-border postal services.
