The department of posts announced a temporary suspension of all postal services to the United States from August 25 on Saturday, citing changes in US customs rules that will be implemented from the end of this month. The decision has been taken after the US issued the Executive Order No. 14324 on July 30, which withdraws the duty-free de minimis exemption for goods valued up to USD 800.
The Department of Posts has taken note of the Executive Order No. 14324 issued by the U.S. 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on 30th July, 2025, under which the duty-free de minimis exemption for goods valued up to USD 800 will be withdrawn with effect from 29th August, 2025.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,” reads a statement issued by the Ministry of Communications.
“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 15th August, 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 25th August, 2025, citing lack of operational and technical readiness.
In view of the above, the Department of Posts has decided to temporarily suspend booking of all types of postal articles, destined for the USA with effect from 25th August, 2025 except letters/documents and gift items up to USD100 in value. These exempt categories will continue to be accepted and conveyed to the USA, subject to further clarifications from CBP and USPS,” the statement reads.
Escalating trade tensions between India and US
The suspension of postal services comes against amid escalating trade tensions between India and the United States. US President Donald Trump recently imposing a 25 per cent tariff on India, along with an additional 25 per cent penalty for purchasing Russian oil, effectively raising the total tariff burden to 50 per cent. The Trump administration has enacted new tariffs on Indian exports, raising the total rate for many products to 50% by late August 2025. The dispute stems from a combination of factors, including India’s continued purchase of discounted Russian oil and disagreements over market access for agricultural products.
Effective August 1, 2025, a reciprocal 25% tariff was imposed, justified by long-standing U.S. concerns over India’s high import duties and other trade barriers. An additional 25% tariff is set to be implemented from August 27, 2025, explicitly targeting India’s continued purchases of Russian crude oil. The U.S. argues that these purchases help fund Russia’s war effort in Ukraine. India has publicly rejected the U.S. tariffs as “unfair, unjustified, and unreasonable,” but has so far not announced direct retaliatory tariffs.
‘If you don’t like, don’t buy’: S Jaishankar
External Affairs Minister S Jaishankar on Saturday strongly defended India’s energy choices, saying India would continue to make decisions in line with its national interest and strategic autonomy despite US President Donald Trump’s tariff threats, over its Russian crude oil purchase.
Jaishankar also hit out at criticism of India’s continued imports of Russian crude and refined products. “If you have a problem buying oil or refined products from Russia, don’t buy. But Europe buys, America buys. If you don’t like, don’t buy from us,” the minister said, sending a clear message that India would never bow to international pressure.