NEW DELHI, INDIA — In a significant escalation of a global trade dispute, India’s Department of Posts (DoP) has announced a complete suspension of all mail services to the United States. This decision comes just days after the DoP had only temporarily halted parcel services, and now extends to all mail categories, including letters, documents, and gift items valued at up to $100.
The move, effective as of a public notice dated August 29, 2025, is a direct response to a new US executive order that has created widespread confusion and logistical challenges for international carriers. Citing “the inability of carriers to transport U.S.-bound mail, and undefined regulatory mechanisms,” the DoP stated it had no alternative but to implement a full suspension.
The current chaos stems from a new US regulation, announced last month by the Trump administration, which scraps the century-old “de minimis” rule. This rule previously allowed goods valued under $800 to enter the US with minimal customs paperwork and without attracting duties. The new order, which took effect on August 29, 2025, mandates that every parcel entering the US is now subject to customs duties, with the exception of small gifts under $100.
The core of the problem lies in the US order’s requirement that airlines or other approved agencies collect and pay customs duties on parcels. However, as Deputy Director General (IR&GB) LK Dash explained to HT, the US has not yet specified who these “qualified parties” will be or how the duty collection system will operate. This lack of clarity has made it impossible for airlines to transport the parcels, forcing the DoP to suspend services to avoid inconveniencing customers.
When asked why even letters and gifts, which are exempt from the new duties, were suspended, Dash reiterated, “If airlines refuse to carry the parcels, we simply have no alternative.”
This disruption is impacting a significant volume of mail, as India Post sends an average of three tonnes of cargo daily to the US, amounting to 100 to 200 tonnes per month. The Department of Posts has expressed regret for the inconvenience caused and has stated it is closely monitoring the situation, with efforts underway to restore services as soon as possible. Customers who have already booked items that could not be dispatched are eligible for a postage refund.
India is not alone in this measure. Reportedly, over 25 countries, including several in Europe, Asia, and North America, have suspended their outbound postal services to the US, citing similar uncertainties around transit and duty collection arrangements.