Trump Tariffs: India, 20 other countries set to suspend postal services to US

A number of countries -- including India -- are suspending most of their postal services to the United States. Reason: An executive order signed by the 47th American president last month.

With the US all set to end a special exemption -- called "de minimis exemption" -- from August 29, a number of countries have announced decisions to suspend their parcel deliveries to America, including India. An executive order, signed by US President Donald Trump on July 30, will require every shipment arriving to American soil, regardless of value or origin, to require full customs clearance. Simply put, these shipments will be subject to applicable tariffs.

With effect from August 29, multiple countries are set to face more stringent US tariffs and customs duties, due to the end of the de minimis exemption.

India suspended most of its outbound postal services to the US from August 25.

Here is the list of countries that have temporarily stopped their postal services to the US due to the incoming tariff rules: 

• Australia  
• Austria  
• Belgium  
• Denmark  
• France  
• Germany  
• India  
• Italy  
• Japan  
• Latvia  
• Lithuania  
• Netherlands  
• New Zealand  
• Norway  
• Poland  
• Singapore  
• South Korea  
• Spain  
• Sweden  
• Switzerland  
• United Kingdom

ALSO READ: From August 25, India to suspend most postal services to US; here's why

What is the duty-free de minimis exemption really about?

The exemption refers to the rule -- introduced by Trump 2.0 -- that permits the entry of goods valued up to $800 to enter the US without incurring customs duties.

Once this exemption is withdrawn, which is due on August 29, the entry of such goods will not be allowed anymore.

Under the new norms, all shipments to the US will attract customs duties, except for gift items worth up to $100.

"All international postal items destined for the USA, regardless of their value, shall be subject to customs duties as per the country-specific International Emergency Economic Power Act (IEEPA) tariff framework," according to an official statement by Government of India's Ministry of Communications. 

The IEEPA law authorises the US president to regulate international commerce and impose economic measures after declaring a national emergency related to an unusual and extraordinary threat to the US.

In other words, it grants the White House more teeth to perform tasks like blocking transactions, seizing assets and regulating trade in order to ensure national security or foreign policy.

ALSO READ | What Rs 50 daily savings can do for you at the Post Office

How will the duty be collected?

According to rules laid out by the US Customs and Border Protection (CBP), applicable duties on postal shipments must now be collected and remitted by transport carriers and other 'qualified parties'. Air carriers have said they cannot handle US-bound postal consignments after August 25 citing "lack of operational and technical readiness", according to the ministry.

This is why India Post will stop booking all international postal articles to the US except for letters, documents and gift parcels up to $100.

The Department of Posts said it is working with CBP and the US Postal Service to resolve the issue and restore normal services at the earliest.