US Postal Service shutdown has become a major global concern after several countries, including India, the UK, Germany, France, and Italy, temporarily suspended their postal services to the United States. The reason behind this disruption is the new tariff rules introduced by the Trump administration, which have created confusion and uncertainty among international postal operators.
Why Are Postal Services Being Suspended?
The issue started when the US government, under President Donald Trump, announced new tariff regulations on July 30, 2025. According to the executive order (Number 14324), goods worth up to $800 (approximately ₹70,000), which were earlier exempted from customs duty, will no longer enjoy duty-free status. This exemption is set to end from August 29, 2025.
As a result, any package, regardless of its value, sent from abroad to the US will now be subject to tariffs. This has forced many postal departments across the world to halt shipments to the US until there is complete clarity on how these tariffs will be collected and managed.
Countries Affected by the US Postal Service Shutdown
The suspension is not limited to India alone. Several European nations have also taken the same step. The affected countries include:
- India
- United Kingdom
- Germany
- France
- Italy
- Netherlands
- Austria
- And other EU member nations
According to PostEurop and several national postal organizations, the lack of proper guidelines from the US has made it impossible for them to process shipments smoothly.
India’s Decision on Postal Services
India’s Ministry of Communications has clarified that the suspension is only temporary. The ministry explained that since the US has not provided a transparent system for tariff collection, the Indian postal department cannot guarantee smooth service.
From August 25, 2025, India will stop accepting most kinds of postal parcels to the US. However, documents, letters, and small gifts worth less than $100 (around ₹8,700) will still be allowed, as these items are exempt from the new tariff rules.
Reactions from Other Countries
- Germany (Deutsche Post): The German postal service has temporarily stopped parcel services to the US for both private and commercial customers. Only letters and documents can be sent.
- Italy (Poste Italiane): Italy suspended shipments from August 23, 2025, citing the same reasons. Letters are still being processed, but parcels are on hold.
- United Kingdom (Royal Mail): The Royal Mail has suspended all packages bound for the US until further notice. The UK government has also indicated that goods valued above $100 will attract a 10% duty.
- France & Netherlands: Both countries have also suspended their services because the US has not provided clarity on tariff collection systems.
Key Questions and Answers
To make the issue clearer, here are some commonly asked questions about the US Postal Service shutdown:
Q1. Why is India suspending postal services to the US?
Answer: The Trump administration’s new order removes duty-free exemptions for goods worth up to $800. From August 29, 2025, all items sent to the US will be subject to customs duty under the International Emergency Economic Powers Act (IEEPA). Since the implementation process is unclear, India decided to suspend services from August 25.
Q2. Are all postal services stopped?
Answer: No. Only parcels and high-value goods are affected. Letters, documents, and gifts worth less than $100 will continue to be sent without tariffs.
Q3. What is the main problem with the new rules?
Answer: The US Customs and Border Protection (CBP) issued some guidelines on August 15, 2025. However, the instructions on how tariffs will be collected and which goods qualify for exemptions remain unclear. Airlines and carriers have said they are not technically ready to handle the new process, forcing postal departments to halt shipments.
Q4. What happens to items already booked?
Answer: Customers who have already booked parcels to the US will receive a refund. Postal departments have apologized for the inconvenience and assured that services will be restored once clarity is received from the US side.
Q5. How long will the suspension last?
Answer: It is a temporary suspension. However, no official timeline has been given. Postal services will monitor the situation and resume once the US issues clearer guidelines.
Impact on Global Trade
The US Postal Service shutdown is also expected to affect global trade. Experts believe the new tariffs could make foreign goods more expensive in the American market.
For example, India is one of the major exporters of textiles, gems, and jewelry to the US. On August 7, 2025, the US imposed a 25% tariff on several Indian goods. Starting August 27, an additional 25% tariff will also come into effect. Earlier, Indian goods faced only about a 10% tariff. With these hikes, Indian exports to the US are likely to become costlier.
According to Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), Indian exports to the US could drop by 40–50% due to the new tariff structure.
Why the Shutdown Matters
The US Postal Service shutdown highlights the global dependence on international postal networks for trade, commerce, and personal communication. Millions of people, including businesses, students, and families, rely on these services to send packages and documents abroad.
The sudden suspension has disrupted supply chains, created uncertainty for exporters, and raised concerns among ordinary citizens who regularly send goods and gifts to their loved ones in the US.
Also read: Modi Visit Ahmedabad: PM to Inaugurate Housing Units and Launch ₹5,477 Crore Projects
Looking Ahead
For now, the suspension is temporary, but much depends on how quickly the US clarifies its tariff collection system. If proper guidelines are issued soon, services could be restored within weeks. However, if the confusion continues, the suspension may last longer, affecting global trade and international relations.
Until then, individuals and businesses are advised to avoid sending parcels to the US and explore alternative shipping methods if urgently required.
