Postal services to the US have been temporarily suspended by India Post after US-bound air carriers expressed their inability to accept postal consignments post August 25, citing a lack of operational and technical readiness on the back of a tariff missive by the Trump administration.

However, services will continue for letters, documents and gift items up to $100, the ministry of communication notified.

The development, which may signal disruption for cross-border MSME exporters relying on low-value, duty-free access to the US market, according to think tank Global Trade Research Initiative (GTRI), follows an executive order issued by the US administration on July 30, 2025.

According to the order, goods valued above $100 will be subject to customs duties in America with effect from August 29 onwards, ending duty-free imports under the $800 de minimis threshold.

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.

Customers who have already booked articles that cannot be dispatched to the US due to these circumstances may seek a refund of postage, the ministry informed, adding that it is closely monitoring the evolving situation incoordination with all stakeholders, and every effort is being made to normalise services at the earliest possible opportunity.

Changing dynamics

The executive order noted that transport carriers delivering shipments through the international postal network, or other “qualified parties” approved by the US Customs and Border Protection (CBP), are required to collect and remit duties on postalshipments.

“While CBP issued certain guidelines on August 15, 2025, several critical processes relating to the designation of “qualified parties” and mechanisms for duty collection and remittance remain undefined. Consequently, US-bound air carriers have expressed their inability to accept postal consignments after 25th August, 2025, citing lack of operational and technical readiness,” a statement from the ministry said.

Following the development, 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, it added.

“These exempt categories will continue to be accepted and conveyed to the US, subject to further clarifications from CBP and USPS,” the statement said.

According to GTRI, international postal shipments remain duty-free until the US CBP establishes a new entry process and publishes it. After that, such shipments will face one of two duty structures: ad valorem duty based on the effective tariff rate underIEEPA, or a flat rate duty—$80, $160, or $200 per item—depending on the country’s tariff bracket.

“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,” Ajay Srivastava, founder of GTRI, observed.