India has temporarily halted postal services to the United States effective August 25, marking another chapter in the deteriorating trade relationship between the two countries. The Department of Posts made this announcement on Saturday, citing significant changes to US customs regulations that have eliminated traditional duty-free benefits for international shipments.

The suspension stems from Executive Order No. 14324, signed by the US administration on July 30, 2025. This directive removes the duty-free de minimis threshold of $800 that previously allowed small-value imports to enter the US without customs charges. Beginning August 29, all postal items shipped to America will be subject to customs duties under the International Emergency Economic Power Act tariff structure, with only gift items valued under $100 maintaining their exempt status.

The new regulations require transport companies or specially approved entities certified by US Customs and Border Protection to handle duty collection on incoming postal shipments. However, the implementation has created operational chaos as crucial elements remain unresolved, including the identification of qualified carriers and the establishment of duty collection procedures. Consequently, airlines servicing US-bound routes have declared their inability to process postal cargo after August 25.

This operational disruption affects all categories of postal items destined for the United States, with the exception of standard letters, official documents, and gifts not exceeding $100 in value. The Department of Posts has announced that customers who have already paid for shipments can request full refunds while authorities work to address the logistical challenges with both US officials and airline partners.

The postal service interruption occurs against a backdrop of intensifying trade disputes between New Delhi and Washington. President Donald Trump has been pressing India to reduce America's trade deficit and has specifically criticized India's continued purchase of discounted Russian petroleum, describing it as supporting Russia's military operations in Ukraine. Trump has threatened to impose additional tariffs beyond the already planned 25% levy, with confirmation that an extra 25% surcharge will be implemented within three weeks.

The Department of Posts expressed sincere apologies to affected customers for the inconvenience and committed to restoring complete postal services to the United States as quickly as possible once the regulatory and operational issues are resolved.