India Halts Postal Services to the US Amid Escalating Tariff Dispute

The suspension follows last week’s partial restrictions on US-bound parcels, which had allowed letters, documents, and gifts worth up to $100.

Containers pile up near container godowns outside JNPT port in Mumbai on tuesday with the disruption of international trade due to US tariffs issues (Representative Photo)
Containers pile up near container godowns outside JNPT port in Mumbai on tuesday with the disruption of international trade due to US tariffs issues (Representative Photo)


India has suspended all postal services to the United States as tensions deepen over trade and tariffs. The move comes after US President Donald Trump imposed steep duties on Indian goods and criticized New Delhi for continuing energy trade with Russia.

According to a notification from the Department of Posts, the suspension covers every category of mail bound for the US, including letters, documents, and small gift items previously permitted under a limited exemption. The department cited the absence of proper transport arrangements and regulatory frameworks as reasons for the decision.

This announcement follows an earlier directive issued last week that had restricted US-bound parcels, but still allowed letters, documents, and gifts up to $100 in value.

The dispute intensified in late July, when Washington withdrew the duty-free exemption for foreign goods worth up to $800, making them subject to customs duties from August 29. A trade think tank noted that shipments would now face either tariffs tied to the effective IEEPA rate or flat fees of $80, $160, or $200 depending on tariff categories.

On July 31, the US further announced a 25% tariff across all commodities. Less than a week later, on August 6, President Trump signed an executive order adding another 25% duty specifically targeting India over its imports of Russian oil, accusing New Delhi of supporting Moscow’s “war machine.”

India dismissed the measure as “unfair” and “hypocritical,” pointing out that both the US and Europe continue buying Russian fertilizers and chemicals. During his recent trip to Moscow, External Affairs Minister S. Jaishankar highlighted that China remains the largest buyer of Russian oil and the European Union leads in Russian LNG imports.


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