Tariff fallout: India suspends most postal services to US from August 25

“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. These exempt categories will continue to be accepted and conveyed to the US. The Department is closely monitoring the evolving situation in coordination with all stakeholders, and every effort is being made to normalise services at the earliest possible opportunity,” the Ministry of Communications said.

“Customers who have already booked articles that cannot be dispatched to the US due to these circumstances may seek a refund of postage. 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 US at the earliest,” the statement added.

As per the White House, the de minimis exemption has been “abused”, with shippers sending illicit fentanyl and other synthetic opioids, precursors and paraphernalia into the US “in reliance on the lower security measures applied to de minimis shipments, killing Americans”.

New Delhi-based think tank, the Global Trade Research Initiative (GTRI), said the suspension underscores the immediate fallout of Washington’s new trade measures, which are expected to disrupt global e-commerce and hit exporters in India and other countries that depended on small-value, duty-free shipping.

Under the new regime, all inbound parcels will attract tariffs. GTRI explained that international postal shipments will remain duty-free until the US Customs and Border Protection (CBP) establishes a new entry process and publishes it.

“After that, such shipments will face one of two duty structures: an ad valorem duty based on the effective tariff rate under IEEPA, or a flat rate duty – $80, $160, or $200 per item – depending on the country’s tariff bracket (under 16%, between 16–25%, or above 25%, respectively),” the think tank said.

However, as US systems to implement these changes are not yet fully in place, there is uncertainty over how much duty will be charged on shipments arriving after August 29. As a precaution, India Post has announced it will halt most mail to the US starting August 25, citing carriers’ inability to process parcels under the new rules, GTRI said.