For decades, the term "de minimis" was the kind of legalese only customs brokers and trade lawyers cared about. It referred to a simple but powerful loophole: as long as a package shipped into the United States was worth less than a set threshold, it could breeze past customs without paying a cent in duties or even filling out a declaration. But as of August 29, 2025, that era is over. President Donald Trump has scrapped the longstanding de minimis exemption, sending shockwaves through global e-commerce and rattling both consumers and businesses worldwide.
The de minimis exemption, in place for nearly 90 years, allowed goods valued under $800 (£595) to enter the US duty-free. According to Sky News, this rule first changed in May when the Trump administration targeted China, ending the duty-free treatment of low-value Chinese goods. The move was a direct response to complaints from US and Western retailers that companies like Shein and Temu were undercutting local businesses by shipping cheap clothes, accessories, and household goods directly to American consumers—no customs, no duties, no fuss.
Now, Trump has expanded the end of the de minimis exemption to all countries. As of today, every low-cost package faces the same tariff rates as pricier imports. Only letters and personal gifts worth less than $100 (£74) remain exempt. For everyone else, the new rules mean a world of added costs and paperwork. For example, a $600 parcel sent from a country facing a 30% tariff rate will now cost $180 more in duties alone. British goods not meeting the £74 exemption are hit with a 10% charge, which is the baseline US tariff on UK imports.
Millions of small packages arrive in the US every day, and all will now be subject to tariffs and customs procedures, as reported by Bloomberg. The change is expected to trigger higher prices and shipping delays for American consumers. The rationale, according to the Trump administration, isn’t just about protecting US businesses—though that’s certainly a big part of it. More duties mean more money for the federal government, and the administration has also cited "deceptive shipping practices, illegal material and duty circumvention." Officials argue that many parcels labeled as low-value goods were actually used to smuggle illegal drugs like fentanyl, which has been invoked as a justification for the broader trade war, even targeting allies like Canada.
With the new rules, chaos has erupted in postal systems worldwide. Postal services in countries like Japan, Germany, and Australia have temporarily refused to accept many items for delivery to the US until the new regime’s practicalities are clarified. Major shipping companies such as DHL and FedEx are scrambling to help their customers navigate the new requirements. In the UK, Royal Mail announced it would be the first international postal service to launch a dedicated operation for the updated rules, rolling out a new postal delivery duties paid (PDDP) service that consumers can use online or at Post Offices. Business customers face different restrictions than individuals: businesses may be invoiced for duties after the fact, while consumers must pay upfront when buying postage. Personal correspondence, however, still requires no customs declaration.
The end of the de minimis exemption is not just a US phenomenon. The European Union removed its own de minimis breaks back in 2021, making all e-commerce imports to the bloc subject to VAT. Now, the EU plans to introduce a €2 fee on goods worth €150 or less to cover customs processing costs. According to The Evening Standard, the UK is also under mounting pressure to follow suit. In the 2024-25 financial year, the total declared trade value of de minimis imports into the UK soared to £5.9 billion—a 53% increase over the previous year, as reported by Sky News. Around £3 billion of those small parcels came from China alone, with Chinese retailers Shein and Temu regularly exploiting the £135 duty-free exemption to ship goods to the UK with no customs duty.
Low-value imports from China to the UK more than doubled in 2024-25, from £1.3 million the previous year to over £3 billion. This surge has drawn sharp criticism from British retailers and politicians alike. Currys’ CEO Alex Baldock is among the UK retail bosses calling for the duty exemption to be scrapped, arguing that it allows overseas e-commerce giants to undercut UK high street businesses burdened by significant business rate taxes. In April 2025, Chancellor Rachel Reeves announced a formal review of the UK’s £135 duty-free threshold, a move welcomed by domestic retailers hoping for a level playing field.
There’s a sense of déjà vu in Europe. The EU, having already removed de minimis breaks, is moving further by introducing a blanket fee on low-value shipments. The US’s new rules have also sparked reports of Chinese companies "dumping" products affected by American tariffs into the UK and other markets. The domino effect is clear: as one major economy tightens its import rules, others feel pressured to follow to avoid becoming dumping grounds for cheap goods.
The consequences of the US’s move are both immediate and far-reaching. For US consumers, the most obvious impact is the risk of higher prices and shipping delays. Those who’ve grown used to ordering inexpensive gadgets or trendy clothes from overseas websites may be in for a rude awakening at checkout. For businesses—especially small ones relying on cross-border e-commerce—the new paperwork, duties, and handling fees could be a logistical and financial headache. Royal Mail, for instance, has said that business account customers will be charged a handling fee per parcel to cover the additional costs, and duties will be calculated based on where the items were originally manufactured.
Meanwhile, the political debate rages on. Supporters of the move argue it’s high time for a crackdown on tax avoidance and unfair competition from overseas e-commerce giants. They point to the sharp rise in de minimis imports as evidence that the system was being abused. Detractors warn of unintended consequences: higher costs for ordinary consumers, snarled supply chains, and possible retaliation from trading partners. There’s also concern that the new rules could stifle small businesses and entrepreneurs who rely on affordable international shipping to reach customers abroad.
Looking ahead, the world of global e-commerce is set for a period of adjustment—and, perhaps, turbulence. As countries revisit their own de minimis rules, the era of frictionless, duty-free online shopping may be drawing to a close. But as with any sweeping change, only time will tell whether the benefits outweigh the costs, and who will ultimately pay the price.
