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    Home»COVER STORY»Amidst Tariff Dispute, India to Suspend Postal Services to US from August 25
    COVER STORY

    Amidst Tariff Dispute, India to Suspend Postal Services to US from August 25

    Voi WorldBy Voi WorldAugust 23, 2025No Comments2 Mins Read
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    VOIWORLD/DESK

    The Department of Posts has announced a temporary suspension of all postal services to the United States starting August 25. The move follows new U.S. customs regulations that take effect later this month, significantly altering the tariff framework for incoming goods.

    According to Executive Order No. 14324, issued on July 30, 2025, the U.S. has withdrawn its duty-free exemption for imported goods valued up to USD 800. Only gift items worth up to USD 100 will remain exempt.

    The decision comes amid heightened trade tensions after President Donald Trump imposed a 25% tariff on Indian imports, plus an additional 25% penalty for India’s purchase of Russian oil—effectively doubling tariff rates to 50%.

    The Department of Posts stated that from August 29, all U.S.-bound international postal items, regardless of value, will be subject to customs duties under the International Emergency Economic Power Act (IEEPA).

    Air carriers have informed Indian authorities they are unable to process shipments due to incomplete duty collection mechanisms, prompting India to halt postal bookings temporarily. Only letters, documents, and gift items up to USD 100 in value will continue to be accepted.

    Customers with undeliverable items may apply for refunds. The Department of Posts said it is working with stakeholders to restore services “at the earliest possible opportunity.”

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