India is set to pause all postal services to the United States starting August 25, following a sharp escalation in trade-related tensions. The decision, announced by the Department of Posts, comes after the United States introduced new customs rules that significantly alter how shipments from abroad are handled.
Why the Suspension Was Announced
According to the official statement, the suspension is a direct result of the US government’s updated tariff framework under the International Emergency Economic Power Act (IEEPA). From August 29, all postal items entering the United States, regardless of their declared value, will be subject to customs duties. Earlier, imports worth up to USD 800 could be sent duty-free, but that exemption has now been withdrawn.
Exceptions to the New Tariff Rules
The updated customs policy still allows some minor exceptions. Personal letters, documents, and small gifts valued up to USD 100 will remain duty-free. However, all other items—whether personal or commercial—will face duties that must be collected and submitted by carriers or other approved agents.
Link to Broader Trade Tensions
This development does not stand in isolation. It comes after the US administration under President Donald Trump imposed a 25 per cent tariff on Indian goods, along with an additional 25 per cent penalty linked to India’s purchase of Russian oil. Experts suggest that these measures reflect the growing strain in trade relations between the two nations.
Impact on Postal Services and Logistics
Air carriers responsible for carrying international consignments have informed authorities that they are not technically ready to implement the new duty collection process. As a result, they have declined to accept US-bound postal shipments, leaving India’s Department of Posts with no option but to temporarily halt the service.
Government Response and Assurances
In its statement, the Department of Posts expressed regret over the inconvenience to customers. It also assured the public that measures are being taken to restore services as quickly as possible. Officials emphasized that the situation is being monitored closely, and efforts are underway to normalise postal operations to the US at the earliest.
Possible Outcomes
The suspension highlights how changes in international trade policy can disrupt even everyday services like postal deliveries. Whether this pause will be short-lived or extend for months depends largely on how quickly transport carriers adapt to the new customs requirements and how the two governments manage their broader trade differences.
