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The Department of Posts has suspended all categories of mails to the US, including letters, documents, and gifts valued up to $100, it said on Friday after the US withdrew the De Minimis Exemption from August 29 for goods from all countries.

“In view of the inability of carriers to transport US-bound mail and undefined regulatory mechanisms, the competent authority has decided to completely suspend all categories of mail to the USA, including letters/documents and gifts valued up to $100,” the department said in its notification.

On August 22, the Department had said it would suspend from August 25 all booking and transmission of postal services to the US, except documents/letters and gifts valued up to $100.

 

Also Read: India suspends postal services to US as new customs norms emerge

What is De Minimis Exemption?

A century-old law in the US that allowed America-bound shipments valued under $800 (per person, per day) to enter the country free of duty and taxes was named the De Minimis Exemption. 

The US Customs and Border Protection (CBP), which screens the low-value and high-value shipments, said de minimis shipments rose to over 1.36 billion in the fiscal year 2024.

On July 30, 2025, US President Donald Trump said he was withdrawing the exemption.

What happens next?

The Global Trade Research Initiative (GTRI) said that now, all in-bound parcels in the US will attract tariffs. However, international postal shipments will remain duty-free until the US CBP establishes a new entry process and publishes it.

 

From then on, the shipments will either face ad valorem duty based on the effective tariff rates under IEEPA, or a flat rate duty of $80, $160, or $200 per item, depending upon country’s tariff bracket (under 16 per cent, between 16-25 per cent, or above 25 per cent respectively).

Small exporters and entrepreneurs running e-commerce businesses in electronics, textiles, jewellery and pharmaceuticals are likely to be affected most by these changed rates as these sectors account for 60 per cent of India’s exports to the US. 

Eventually, margins will fall and sales prices for products will rise, leading to a drop in demand. Smaller businesses will be affected most.