De Minimus Blues: Global Mail Freeze
New Delhi: India’s Department of Posts announced today a temporary suspension of most postal services to the United States of America starting August 25, 2025.
The suspension has been prompted by uncertainties in new United States customs regulations under Executive Order 14324, signed by President Donald Trump on July 30, 2025. The order eliminates the duty-free de minimis exemption for goods valued up to 800 United States Dollars, effective August 29, 2025, requiring all international postal items, except letters, documents, and gifts up to 100 United States Dollars, to face customs duties under the International Emergency Economic Powers Act tariff framework.
India’s Department of Posts, under the Ministry of Communications, noted that United States-bound air carriers, citing inadequate operational and technical readiness due to unclear United States Customs and Border Protection agency guidelines issued on August 15, will not accept consignments after August 25. Customers with affected bookings can claim postage refunds, and the department is collaborating with stakeholders to restore services swiftly, expressing regret for the inconvenience caused.
“The Department is closely monitoring the evolving situation in coordination with all stakeholders, and every effort is being made to normalise services at the earliest possible opportunity,” it stated.
Executive Order 14324, grounded in the International Emergency Economic Powers Act, the National Emergencies Act, section 604 of the Trade Act of 1974, and section 301 of title 3, United States Code, seeks to address the misuse of low-value shipments for evading tariffs and importing illicit goods like fentanyl and counterfeit products, which the administration views as threats to national security and public health.
This directive builds on earlier orders: Executive Order 14193, which targeted Canada with a deferred de minimis suspension; Executive Order 14194 for Mexico; and Executive Order 14195 for the People’s Republic of China and Hong Kong, where the exemption was later enforced once duty collection systems were established. The United States Customs and Border Protection agency’s guidelines require approved carriers or qualified parties to collect duties, but unresolved details about these designations have led to logistical bottlenecks, contributing to the global postal disruptions.
The suspension aligns with escalating trade tensions, exacerbated by Trump’s imposition of a 25 per cent tariff on Indian goods, plus an additional 25 per cent penalty linked to India’s Russian oil purchases, effectively raising tariffs to 50 per cent on certain imports, with the additional levy effective from August 27, 2025.
On July 31, 2025, Executive Order 14325 further intensified pressures by increasing tariffs on select Canadian goods from 25 per cent to 35 per cent, effective August 1, citing inadequate cooperation on drug trafficking across the northern border. Canada’s Prime Minister Mark Carney voiced disappointment, noting that nearly 90 per cent of Canadian exports remain exempt under the United States-Mexico-Canada Agreement, and the Canadian government has relaxed some retaliatory tariffs to ease tensions. Mexico and the People’s Republic of China, previously hit by similar United States tariff policies, have imposed counter-tariffs, though no new actions directly tied to Executive Order 14325 have been reported. The European Union has expressed concerns about the broader impact of the United States’ tariff strategies without specifying responses to the latest measures.
Globally, the ripple effects are evident as European postal services mirror India’s response. Germany, Denmark, Sweden, and Italy have halted most United States-bound merchandise shipments, citing the impending de minimis rule change and customs processing challenges. France’s La Poste plans to pause parcel deliveries from August 25, except for gifts under approximately 50 United States Dollars, while the United Kingdom’s Royal Mail and Germany’s Deutsche Post DHL Group have similarly curtailed services until compliance systems are in place.
PostEurop, the association representing European postal operators, highlighted the worldwide impact on shipments starting August 29. So far, no official statements from the White House or the United States Customs and Border Protection agency have addressed these international postal suspensions, leaving the global logistics community awaiting further clarity to navigate the new tariff landscape.
– global bihari bureau
