India will temporarily halt all postal services to the United States beginning August 25, the Department of Posts announced Saturday, citing changes to U.S. customs rules and mounting trade frictions between the two countries.
The move follows a July 30 executive order from U.S. President Donald Trump that withdrew duty-free exemptions on imported goods valued up to $800. Under the new framework, all postal items sent to the U.S. will now be subject to customs duties, though letters, documents, and gifts worth under $100 will remain exempt.
The policy shift comes on the heels of Washington’s decision to impose a 25 per cent tariff on Indian goods, plus an additional 25 per cent penalty tied to India’s continued purchase of Russian oil. The U.S. measures were introduced under the International Emergency Economic Powers Act (IEEPA).
With the new duties set to take effect August 29, American air carriers informed Indian officials that they were not technically prepared to collect and remit tariffs on postal shipments as required by U.S. Customs and Border Protection. Consequently, carriers have refused to accept consignments bound for the United States.
In its statement, the Department of Posts expressed regret for the disruption and assured customers that efforts are underway to restore services as quickly as possible. Officials said they are closely monitoring the situation and working with international partners to normalize operations.