India’s Department of Posts announced a temporary suspension of most postal services to the United States starting August 25, 2025. This move follows the US Executive Order No. 14324 issued on July 30, 2025, which removes the longstanding duty-free exemption for goods valued up to USD 800, effective August 29. Except for letters, documents, and gift items valued up to USD 100, all other postal consignments to the US will attract customs duties.

Due to uncertainties around customs duty collection and operational challenges, transport carriers have refused to accept postal parcels to the US, prompting India Post’s suspension. Refunds will be available for already booked but undeliverable packages.

New US Tariff Rules Under Executive Order No. 14324 Impacting Postal Shipments

The US administration’s Executive Order No. 14324 terminates the de minimis exemption that allowed most goods worth under USD 800 to enter duty-free. Starting August 29, 2025, all postal shipments to the US, regardless of their value, will face customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework. Only gift parcels worth up to USD 100 remain exempt.

The new order entrusts “qualified parties” – transport carriers or authorised agents approved by US Customs and Border Protection (CBP) – with the responsibility of collecting duties from recipients and remitting them to US authorities. However, CBP has yet to finalise guidelines for approving these parties and establishing the duty collection system.

Operational Impact on India Post and Global Shipping Scenario

Due to unclear implementation details and technical difficulties, most air carriers handling US-bound mail have declined to transport private and postal parcels after August 25. In response, India Post has announced the suspension of booking of all postal consignments destined for the US, except for letters, documents, and gifts under USD 100.

Several European postal services, including those in Germany, France, Austria, and Scandinavian countries, have also suspended parcel shipments to the US as a precaution. India Post is actively coordinating with international partners including the United States Postal Service (USPS) to resolve issues and resume normal service at the earliest. Customers who had booked consignments that fall under the suspension category are entitled to postage refunds.

The Logical Indian’s Perspective

The suspension of India-US postal services is a direct consequence of unilateral trade policy changes that can disrupt global commerce and everyday lives. While fair taxation and national security concerns must be addressed, sudden regulatory shifts without clear implementation can penalise exporters, small businesses, and consumers heavily reliant on affordable international shipping.

Transparent international cooperation and stakeholder dialogue are essential to balance sovereign interests and smooth cross-border trade.