India Suspends US-Bound Mail Bookings Amid Tariff Tensions

India has decided to suspend bookings for all categories of US-bound mail, including letters, documents, and gifts valued up to $100. The Department of Posts, Ministry of Communications, issued a notice on Friday, August 29, citing “the inability of carriers to transport US-bound mail and undefined regulatory mechanisms” as the reasons for the suspension.

Earlier in August, US-bound air carriers had already refused shipments due to unclear norms issued by the American customs department. Under a US executive order issued on July 30, 2025, goods valued over $100 are subject to customs duties in the US starting August 29. While the previous order allowed low-value mail up to $100, the latest directive suspends all mail services to the US.

Impact of Trump Tariffs

This decision follows the imposition of 50% tariffs on Indian goods by the US. The tariffs comprise 25% reciprocal duties under US policy and an additional 25% penalty on India for trading with Russia. New regulations impose either ad valorem duties based on effective tariff rates under IEEPA or flat-rate duties of $80, $160, or $200 per item, depending on the country’s tariff bracket.

End of Low-Value Exemption for US Shipments

The US has also ended tariff exemptions for parcels valued under $800, regardless of origin or transportation method. Foreign postal agencies can collect duties based on the package value or a flat tax according to the US tariff rate for the country of origin. Packages from India now face a flat $200 duty under the new tariff rules.

The removal of the de minimis exemption, in place since 1938 and raised to $800 in 2015, aims to enhance US customs revenue, potentially adding $10 billion annually. This measure also extends the Trump administration’s previous restrictions on shipments from China and Hong Kong, implemented to curb fentanyl imports.