De minimis rules let low-value parcels into a country without duty and with lighter paperwork. They made a whole generation of direct-to-consumer business possible: one warehouse, one carrier, customers in dozens of countries. In the space of a year, the two largest consumer markets changed the rules.
This article is a general overview, not customs or legal advice. Duty rates and procedures depend on the product, its origin and the route; confirm your case with a licensed customs broker.
What changed in the United States
The US used to waive duty on shipments valued at $800 or less per person per day. An executive order signed on July 30, 2025 suspended that exemption for all countries: from 12:01 a.m. eastern daylight time on August 29, 2025, the duty-free de minimis treatment no longer applies, regardless of value, country of origin or mode of transport. Shipments through the international postal network were given their own duty regime under the same order.
In practice, every parcel to an American customer now carries duty and formal clearance costs that used to be zero. If you priced your products with “duty-free under $800” in mind, your margin assumptions are out of date.
What changes in the European Union
The EU had a similar threshold: imported goods worth up to €150 were exempt from customs duty (VAT has been charged on them since 2021). Since July 1, 2026, according to the European Commission, a temporary €3 customs duty has applied to these low-value parcels, mostly bought online — clothing, toys, electronics and other consumer goods. The duty is charged per item category, not per piece: five T-shirts cost €3, while three T-shirts and a watch cost €6, because they fall under two tariff classifications. The seller or importer is responsible for declaring and paying it.
The Commission describes it as a temporary measure until a permanent reform of EU customs rules takes over. For brands it means the same thing as in the US: a single parcel from outside the EU now has a cost floor it did not have before.
Who is affected — and who benefits
- Hit hardest: brands and resellers that fulfil every order as an individual parcel from another country, especially at low price points where a fixed duty is a large share of the basket.
- Less affected: brands that ship in bulk to a warehouse in the market and fulfil locally. The duty is paid once on the bulk import, under normal rules.
- Potential winners: local brands and brands with local stock, whose prices no longer compete against duty-free parcels.
Five things to change now
- Recalculate landed cost per market. Product, freight, duty, brokerage and payment fees, per SKU and per country. Some products will no longer make sense to ship individually.
- Show the full price at checkout. Collecting duties up front (delivered duty paid) avoids the worst experience in cross-border retail: a customer asked to pay a surprise fee at the door, refusing the parcel.
- Classify your products properly. In the EU the €3 applies per tariff heading, so clean classification data directly affects cost.
- Consider stock in the market. A third-party warehouse or marketplace fulfilment in the US or EU turns thousands of small imports into one bulk import.
- Review your pricing pages and FAQs. “Free shipping, no customs fees” may no longer be true. Fix the promise before customers find out.
The bigger picture
Cheap individual parcels were a structural advantage for cross-border sellers. That advantage is shrinking on both sides of the Atlantic. What remains is everything that has nothing to do with duty: a brand customers trust, fast local delivery, easy returns and a checkout without surprises. If you are planning your next market, our guide to selling into the EU from the US or UK covers VAT, product safety and accessibility as well.
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