New Delhi: The Trump administration’s latest trade move has resulted in the suspension of parcel services from India to the United States starting August 27. The decision, which stems from newly imposed tariffs, is expected to directly affect small businesses, artisans, and ordinary citizens. Experts warn that students in the US, who often rely on parcels sent by friends and family from India, will also face difficulties. The Indian government has assured that it will take all necessary steps to safeguard the nation’s interests, but the suspension poses a significant short-term challenge.
India Post suspends most postal services to the US from Aug 25, 2025, due to new US customs rules under Executive Order 14324. Only letters and gifts under $100 are allowed. Refunds will be issued for undelivered items. [Source: Department of Posts] pic.twitter.com/pZfyX09jIi
— Memeonomics (@AbinKotera) August 23, 2025
The issue originates from Washington’s decision to levy a 25% tariff on Indian goods, citing India’s continued imports of Russian military equipment and oil. These tariffs have already driven up the prices of Indian products in the US market, leading to a decline in demand. From August 27, the tariff rate will rise to 50%, making it economically unviable to send parcels or small consignments from India. The move is expected to hit sectors such as textiles, leather, gems and jewelry, pharmaceuticals, and machinery, dealing a blow to small exporters and independent sellers.
Analysts suggest that the measure has implications beyond trade, impacting broader international relations between the two countries. Although trade negotiations are ongoing, progress has been limited. Until a resolution is achieved, Indian businesses and individuals dependent on exports to the US may be forced to explore alternative markets and logistics channels to sustain operations.