India Halts Postal Deliveries to America After U.S. Tariff Hike, Effective August 25

New Delhi: India will temporarily suspend most postal services to the United States starting August 25, 2025, following fresh trade and customs regulations introduced by the U.S. administration. The Department of Posts announced the move on Friday, citing operational challenges and uncertainties created by Washington’s decision to scrap the “de minimis” exemption that previously allowed parcels valued under $800 to enter the U.S. without customs duty.

From next week, only letters, documents and gift items worth up to $100 will continue to be delivered, while all other categories of mail, including e-commerce parcels and larger consignments, will be halted. The department explained that American carriers had expressed their inability to handle incoming mail shipments after August 25, as U.S. Customs and Border Protection has yet to finalize procedures for collecting duties under the new rules.

The decision comes amid a sharp escalation in trade tensions between New Delhi and Washington. Earlier this month, President Donald Trump’s administration imposed a 25 percent tariff on Indian goods, followed by another 25 percent surcharge, effectively doubling the import duty to 50 percent. It is one of the steepest tariff rates imposed on any U.S. trading partner in recent years.

Scheduled trade talks between the two countries, planned for the last week of August, were abruptly cancelled following the tariff announcement. While External Affairs Minister S. Jaishankar has maintained that dialogue channels remain open, he also underlined that India will safeguard the interests of its farmers, small businesses and exporters.

The suspension of postal services is expected to disrupt thousands of small exporters and individuals who rely on affordable mail channels to ship products and personal items to the U.S. Courier companies may see a surge in demand, though costs are likely to be significantly higher than postal rates.

This development highlights the growing strain in U.S.–India economic relations. With tariffs at historic highs and communication channels under stress, businesses on both sides are bracing for further uncertainty. For now, India has made clear that until Washington provides clarity on customs processes, the flow of most postal consignments across the Pacific will remain stalled.