By Maria Kalamatas — August 25, 2025

NEW DELHI — August 25, 2025. The normally steady flow of small parcels from India to the United States has come to an abrupt halt. Over the weekend, India Post announced the suspension of most postal services to the U.S., citing a lack of clarity over Washington’s new customs rules.

At sorting centers in Delhi and Mumbai, piles of undelivered packages have already begun stacking up. Exporters say they were given little warning.

“We had shipments of handicrafts worth just $40 each,” said Ramesh Gupta, a Jaipur-based artisan exporter. “Now they are stuck. Customers in the U.S. don’t understand why we suddenly can’t deliver.”

The trigger: U.S. customs changes

The disruption follows the United States’ decision to scrap its long-standing $800 duty-free de minimis threshold, which had allowed small parcels to move quickly and cheaply. Every shipment, regardless of value, must now pass through full customs clearance.

For India Post, which handles thousands of small packages daily for online sellers and SMEs, the new requirement proved impossible to implement overnight.

Limited exceptions

Officials confirmed that only “lightweight, documents-only” parcels would continue to move under special channels. Everything else — from textiles to leather goods — has been paused until systems are upgraded.

Logistics providers warn that the suspension could stretch for weeks. “This isn’t something that can be fixed in a day,” said Anita Verma, a supply chain analyst in New Delhi. “It requires digital integration, training, and agreements between customs authorities.”

Small exporters hit hardest

For India’s booming online marketplace sellers, the timing is devastating. The U.S. is their single largest overseas market for categories like jewelry, handicrafts, and Ayurveda products. Many had built their businesses on the assumption of cheap, fast postal routes.

“Express couriers can still deliver, but their prices are three times higher,” said Gupta. “My customers won’t pay that.”

Outlook

Indian officials said they are in talks with their U.S. counterparts to find a temporary workaround. But until a deal is reached, thousands of micro-exporters will be left in limbo, and American consumers expecting low-cost Indian goods may find their orders indefinitely delayed.

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