From August 25, India joined nearly 25 countries—including major economies like the UK, Germany, Japan, Australia, and others—in temporarily suspending most parcel shipments to the United States. The decision stems from confusion and operational challenges following a major shift in U.S. import tariff policy.
📦 What Just Changed?
The Trump administration, through an executive order effective August 29, 2025, has eliminated the long-standing “de minimis exemption”, which allowed packages worth up to $800 to enter the U.S. duty-free. Now:
- All incoming shipments (except documents and gifts under $100) face customs duties.
- Tariff rates correspond to origin-country rates—India, for example, now faces up to 50% duties—or a flat fee between $80–$200.
- Postal operators have no clear guidance on how duties should be collected, who qualifies as a “duty collector,” or how to remit funds to U.S. Customs.
🌍 Global E-Commerce Feels the Shockwave
This disruption has triggered a wave of international pauses:
- India’s Department of Posts suspended most U.S.-bound parcels starting August 25.
- Postal services in Germany, France, Spain, Belgium, UK, Japan, Australia, Thailand, South Korea, Singapore, New Zealand, and others have either halted or scaled back services.
These pauses are not indefinite—they reflect postal operators’ need for time to restructure logistics, software, and tariff-collection processes.
⏳ Why Postal Operators Hit Pause
Key sources of uncertainty have pushed global postal agencies to suspend shipments:
- Implementation deadline: The rule took effect just days after its announcement.
- Lack of clarity: No country knows how to charge and remit duties through existing postal-migration systems.
- Operational disruption: Collecting customs fees in advance, adjusting labeling, and handling returns would require costly upgrades.
- Regulatory pressure: Even parcels labeled “gifts under $100” face stricter scrutiny to prevent misuse.
The Universal Postal Union (UPU), representing 192 member nations, acknowledges the challenge. The UPU has reached out to U.S. Secretary of State Marco Rubio and is coordinating efforts to develop a duty-paid system across its network
💡 What This Means for You
- Small businesses and e-commerce sellers – especially those shipping inexpensive goods – now face unpredictable costs and shipping barriers.
- Customers in the U.S. may experience delays, higher prices, or unavailability of certain imports.
- Businesses reliant on cost-effective postal services must pivot quickly—shifting to expeditious courier services (e.g., DHL Express, FedEx) at significantly higher costs.
🧭 Looking Ahead
Although the suspensions are currently labeled “temporary,” delays could stretch weeks or longer, depending on:
- Progress on implementation protocols
- Cooperation between postal authorities and customs agencies
- Alternative solutions like prepaid-duty models
Until then, global parcel flows remain disrupted, affecting both businesses and individuals across continents.
✍️ In Summary
The abrupt end of the U.S. de minimis exemption on low-value shipments has sparked international postal paralysis. With duties now imposed on even small parcels—from $100 to $800+—postal agencies worldwide face operational and regulatory chaos. Countries including India have paused shipments while awaiting clarity and system upgrades. Consumers and businesses alike must brace for a ripple of delays, costs, and logistical headaches—unless swift solutions emerge.
Source: Times of India
