The change means U.S. consumers won't be getting fast fashion bargains from China anymore
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End of duty-free threshold: The U.S. is eliminating its de minimis exemption, which let packages worth under $800 enter the country without duties.
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Shipping suspensions: Postal operators in Germany, Denmark, Sweden, Italy, France, Austria, and the U.K. are pausing or restricting shipments to the U.S. amid uncertainty.
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Tariff confusion: With little clarity from U.S. authorities, carriers warn of delays, higher costs, and widespread disruption to cross-border e-commerce.
Rain, sleet and snow may not stop the mail but changes in import rules just may. Blame the end of something called the "de minimis" rule -- along-standing exemption on import duties for low-value packages entering the United States. It is expiring Friday, triggering a wave of shipping suspensions by European postal services and raising fears of higher costs for U.S. consumers and retailers.
The allowed packages worth less than $800 to enter duty-free. In 2024 alone, 1.36 billion shipments valued at $64.6 billion entered the U.S. under the rule, according to U.S. Customs and Border Protection. In recent years, low-cost "fast fashion" retailers like Shein have capitalized on the rule, flooding the U.S. with low-cost merchandise.
Now, with the threshold gone, international postal carriers say they cannot guarantee compliance with the new tariffs and procedures. Over the weekend, postal services in Germany, Denmark, Sweden, and Italy halted most merchandise shipments to the U.S., while France and Austria announced they would follow suit Monday. Britains Royal Mail said it would pause shipments on Tuesday, warning that items worth more than $100 including personal gifts will now face a 10% duty.
Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to U.S. Customs and Border Protection will be carried out, DHL, Europes largest shipping provider, said in a statement. The company said it will no longer accept parcels from business customers bound for the U.S.
First tariffs, now this
The suspension comes just weeks after Washington and Brussels agreed to impose a 15% tariff on most EU goods. Packages previously exempt under the $800 threshold will now be subject to the same duties.
The U.S. already ended duty-free entry for Chinese goods in May, part of the Trump administrations push to curb imports of inexpensive foreign products. That restriction is now being extended worldwide.
Postal operators say they were given too little time to prepare for the change. Italys Poste Italiane, Frances La Poste, and Austrias Austrian Post each cited unclear U.S. guidance and a lack of updated customs systems. PostEurop, representing 51 European postal operators, warned that if no solution is found by August 29, all its members may suspend U.S.-bound shipments.
If you have something to send to America, you should do it today, PostNL spokesperson Wout Witteveen told the Associated Press.
De minimis not so minimus
Shein, Temu and other Chinese bargain outlets made hay while the sun shone.In 2022 alone, 83% of U.S. e-commerce imports fell under this exemption, and Shein and Temu were responsible for roughly 30% of that flood of goods. With the loopholeclosing, Shein adjusted its pricing to account for the new tariffs, which can run as high as 30% on apparel and up to 145% in some cases.
The change also destabilizes Sheins entire business strategy, which hinges on low-cost production in China, fast global shipping, and minimal regulatory friction. With tariffs in play, Shein and competitors like Temu now face more red tape, longer customs delays, and thinner margins. While some cost increases are passed along to customers, firms must be careful not to erode their appeal as affordable alternatives to domestic retailers.
Removing the de minimis exemption for Chinese imports is likely to raise prices for consumers, particularly for lower-income consumers, said Amit Khandelwal, a Yale economist and co-author of astudy by the National Bureau of Economic Research. That study estimated the de minimis rollback will cost U.S. consumers $10.9 to $13 billion overall, with poorer zip codes bearing a larger share of that burden.
Posted: 2025-08-25 01:39:40