India to suspend all parcel services to US from August 25 amid Trump’s tariff move

India Post on Saturday announced it will suspend all parcel services to the United States from August 25, joining several European postal operators in halting shipments amid uncertainty over new American customs duty rules.

The Department of Posts said it will stop accepting most consignments to the US from August 25, following changes to US duty regulations that take effect later this month.

Under a US order issued on July 30, the duty-free exemption for goods worth up to USD 800 has been withdrawn. Starting August 29, all postal items bound for the US—regardless of their value—will attract customs duties under the International Emergency Economic Powers Act (IEEPA). Only gift items valued up to USD 100 will remain exempt.

The order further states that only international carriers and other “qualified parties” authorised by US Customs can collect and remit duties on postal shipments. However, with no clear process yet for approving such parties, airlines have said they will be unable to carry US-bound postal parcels after August 25.

As a result, India Post will suspend the booking of all items to the US from that date, except letters, documents and gifts worth up to USD 100. Customers who have already booked parcels that cannot be dispatched will be eligible for postage refunds.

“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 USA at the earliest,” the postal service said in a statement.

India is not alone in halting shipments. Postal operators in Scandinavia, Austria, France and Belgium have also paused US-bound parcel services ahead of the rule change, Reuters reported.

Deutsche Post DHL said its German parcel division will stop accepting standard shipments to the US from August 25, though its premium DHL Express service will continue. Private customers will still be able to send gifts worth up to USD 100, but these consignments will face tighter checks to prevent misuse.

The new US rules come as part of sweeping trade measures introduced by Donald Trump in his second term. Alongside these, Washington has also imposed retaliatory tariffs on several countries, including India. Earlier this month, the Trump administration doubled tariffs on Indian exports to 50 per cent, citing New Delhi’s continued imports of Russian crude oil.