India Post suspends US services: What it means for students, families

The halt in India-US postal services may disrupt dispatch of medicines, gifts and personal parcels, pushing families toward costly private couriers

India Post has announced that all postal services to the United States stand temporarily suspended from August 25. The decision has triggered concern among students, families and small exporters who depended on the service’s lower rates to send parcels.

 

What's the latest?

 

In a statement on August 23, the Department of Posts said it was acting on a July executive order by the US government that withdraws the duty-free de minimis exemption for goods valued up to $800, effective August 29, 2025.

 

The exemption had allowed low-value shipments to enter the US duty- and tax-free, reducing costs and delays. The Trump administration scrapped it, arguing that foreign online retailers were bypassing tariffs and safety checks.

 

 

From now, all international postal items bound for the US will attract customs duties under the International Emergency Economic Power Act (IEEPA) tariff framework. Only letters/documents and gift items up to $100 will remain exempt.

 

Why it matters to students, families

 

For families in India, sending essentials by post is a matter of habit and affordability as well. For Indian students studying in the US, the halt poses practical hurdles: 

• Medicines: Many parents send small consignments of prescribed drugs not easily available abroad.
• Festival parcels: Raksha Bandhan, Diwali, Eid, and Christmas see a surge in food packets and gifts dispatched to children overseas.
• Legal and personal documents: Affidavits, attestations, and notarised copies often travel by post.

While the letters and documents remain exempt, other items may attract higher tariffs. 

Private couriers such as FedEx, UPS, or DHL cost three to five times more than India Post for light parcels under two kilograms.

 

For example, a 2 kg package to be parcelled to the US from India would cost ₹2,600 through India Post, but you may need to shell around ₹9,000-₹11,000 for the same through DHL. On UPS, it would cost around ₹18,000 through the Express Saver service.

 

What's the scale of the impact?

 

The suspension of postal service hits not just households but also micro-exporters who cannot afford courier tariffs.

 

The US is among India Post’s top international destinations, accounting for a significant share of registered post volumes.

 

According to the Universal Postal Union’s 2023 Postal Statistics, India Post handled over 22 million international consignments, with the US, UK, and UAE forming the bulk.

 

Small exporters, especially those in handicrafts and e-commerce, also depend on low-value parcel post to ship goods to US buyers.

 

Are other countries also affected?

 

State-run postal operators worldwide are also suspending shipments to the US due to the rule change, citing a lack of clarity from American authorities on how the duties will be collected.

 

• Korea Post: halting air parcels and some express services this week, keeping only premium courier-linked options.
• Singapore’s SingPost: suspending standard commercial shipments to the US from Monday.
• Europe: Austria, Belgium, the Czech Republic and the UK’s Royal Mail plan suspensions from late August.
• Japan: warned of potential delays or returns until a system is clarified.
• Australia Post: suspended some transit deliveries routed via Australia, though direct shipments remain unaffected.

 

What Department of Posts is doing

 

The Department said it is “closely monitoring the evolving situation” with stakeholders and working to restore services. Customers who booked articles that cannot be dispatched to the US can claim a refund of postage.

 

“The Department of Posts deeply regrets the inconvenience caused to customers and assures that all possible measures are being undertaken to resume full services to the USA at the earliest,” it said.