Manas Dasgupta
NEW DELHI, Aug 23: India’s Department of Posts on Saturday announced temporarily suspending from Monday booking and transmission of all types of postal articles destined for the United States, except documents and gifts worth up to $100, due to new American duty rules, after President Donald Trump’s 50% tariffs on Indian goods.
According to a communication from the Department, the move is introduced because of an executive order of the U.S. administration that will come into effect from August 29. U.S. bound carriers have expressed their inability to carry postal shipments in the absence of fully defined mechanisms for duty collection and data exchange.
“The Department of Posts has taken note of the Executive Order No. 14324 issued by the US Administration on 30th July, 2025, under which the duty-free de minimis exemption for goods valued up to USD 800 will be withdrawn with effect from 29th August, 2025,” an official release from the Ministry of Communications read.
The Postal Department said it was closely following the situation and taking measures to restore services, the communication said. As per the Executive Order, transport carriers delivering shipments through the international postal network, or other “qualified parties” approved by the U.S. Customs and Border Protection (CBP), are required to collect and remit duties on postal shipments.
“While CBP issued certain guidelines on August 15, 2025, several critical processes relating to the designation of “qualified parties” and mechanisms for duty collection and remittance remain undefined. Consequently, U.S.-bound air carriers have expressed their inability to accept postal consignments after August 25, 2025, citing lack of operational and technical readiness,” a statement from the ministry said.
Following the development, the “Department of Posts has decided to temporarily suspend booking of all types of postal articles,” destined for the US with effect from August 25, 2025 except letters/documents and gift items up to $100 in value, it said. “These exempt categories will continue to be accepted and conveyed to the US, subject to further clarifications from CBP and USPS,” the statement said.
The Executive Order mandates that transport carriers or other “qualified parties” approved by the US Customs and Border Protection (CBP), are required to collect and remit duties on postal shipments. As a result, US-bound air carriers stated that due to lack of operational and technical readiness, they will be unable to accept postal consignments.
“The Department of Posts deeply regrets the inconvenience caused to customers and assures that all possible measures are being undertaken to resume full services to the USA at the earliest,” the statement said, while adding that it is closely monitoring the situation and making efforts to normalise services soon.
The suspension of postal services comes against the backdrop of escalating trade tensions between India and the US, after President Donald Trump imposed a 50% tariff on Indian goods, including an additional 25% penalty for purchasing Russian oil. India had slammed the decision as “unfair, unjustified and unreasonable” and that it will “take all actions” necessary to protect national interests.
