India suspends postal services to US as Trump’s tariffs come into effect

The Department of Posts of India on Saturday announced that it is temporarily suspending all types of postal articles dispatched for the United States after President Donald Trump’s 50% tariffs on Indian goods. An official release from the Ministry of Communications said, “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on 30th July, 2025, under which the duty-free de minimis exemption for goods valued up to USD 800 will be withdrawn with effect from 29th August, 2025.”

“Consequently, all international postal items destined for the USA, regardless of their value, shall be subject to customs duties as per the country-specific International Emergency Economic Power Act (IEEPA) tariff framework. However, gift items up to the value of USD 100 shall continue to remain exempt from duties.” Accordingly, the postal department will suspend the booking of articles for the US, except for those valued up to USD 100.

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Articles valued up to $100 allowed

As per the Executive Order, all 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 15th August, 2025, several processes relating to the designation of “qualified parties” and mechanisms for duty collection and remittance are still not properly defined, and hence US-bound air carriers have expressed their inability to accept postal consignments after 25th August, 2025, citing lack of readiness, the statement added.

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However, letters, documents, and gift items up to USD 100 in value will continue to be accepted for the USA, subject to further clarifications from CBP and USPS.

Many other countries also suspend shipment of packages

Apart from India, other countries like Germany, Denmark, Sweden, Italy, France, Belgium, Austria, the United Kingdom, and Scandinavia are also halting parcel deliveries to the US, said a Reuters report.

The US and the European Union agreed to a trade framework last month and set a 15% tariff on the vast majority of products shipped from the EU, but many European postal services say they are pausing deliveries now because they cannot guarantee the goods will enter the US before Aug. 29. They cite ambiguity about what kind of goods are covered by the new rules and the lack of time to process their implications.

What is the de minimis exemption

The de minimis tax exemption is a law that the US Congress passed allowing shipments bound for American businesses and consumers valued under $800 (per person, per day) to enter the US free of duty and taxes.

The exemption allowed goods to be shipped quickly and affordably and hence benefited Americans as it kept inflation down.

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The change will affect international e-commerce, as it will end the fast and affordable way for businesses to ship low-value parcels to their consumers in the US. Consequently, the shipments will be subject to applicable duties, which could increase costs.