The Ministry of Communication announced today the temporary suspension of all postal services to the United States. This decision comes in the wake of escalating trade tensions between the two nations, triggered by US President Donald Trump's recent imposition of additional tariffs on imports from India. The tariffs, which include a 25% levy on certain Indian goods, were enacted in response to India's continued purchase of oil from Russia.
According to the Press Information Bureau (PIB), the Department of Posts made the decision to suspend postal services following changes in US trade regulations stemming from Trump's tariffs. The suspension will become effective from August 27 onwards.
President Trump's move to end the "de minimis" exemption, which previously allowed duty-free entry for items valued under $800, has further complicated the trade landscape. This exemption, which applied to millions of parcels processed daily by U.S. Customs and Border Protection (CBP), will cease to exist on August 29. Consequently, duties will be assessed on U.S. imports shipped by mail based on the country-of-origin tariff rate imposed by Trump. An alternative being considered is a temporary flat fee of $80 to $200 per item for the next six months.
The Indian government has criticized the tariffs as "unjustified and unreasonable" and has vowed to take necessary steps to protect its national interests. The Department of Posts is closely monitoring the situation and is working to normalize services as soon as possible.
The suspension of postal services is not an isolated incident. Several national mail services are planning to temporarily halt services to the U.S. due to the lack of clarity on how duties will be collected and data submitted. Korea Post will halt accepting air parcels and some express mail services to the U.S. starting Tuesday, while Singapore's SingPost will suspend standard services for commercial shipments to America from Monday.
These trade disputes have broader implications for India's foreign policy. Amidst the tariff war, India is reportedly strengthening ties with Russia and China. Experts suggest that Trump's tariffs have created anti-American sentiment in India and accelerated its engagement with these countries. Foreign Minister S. Jaishankar's recent visit to Moscow resulted in an agreement to boost trade ties.
