President Trump caused a stir in the business community in August by ending the US de minimis provision two years earlier than expected.
The EC has followed suit and is calling for a handling fee on cheap shipments from China to be implemented across the EU two years ahead of schedule which was to scrap a de minimis threshold of €150 in 2028.
There are also rumours that Chancellor Rachel Reeves will remove the UK’s de minimis threshold in the budget on November 26th.
So this would seem like a good time to understand what de minimis is and how its removal will affect all the stakeholders.
What is de minimis?
De minimis is a minimum value below which imported goods can enter a country without incurring customs duties or taxes.
In the US, this threshold was set at US$800 and enabled an easier flow of low-value goods into the country.
The exemption has been particularly significant for the business-to-consumer (B2C) e-commerce sector.
What changed?
Earlier this summer, Donald Trump signed an executive order to bring forward his administration’s decision to end de minimis for imports into the US.
The exemption ended on 29th August 2025, meaning all imports, regardless of their value, will be subject to customs clearance procedures and potential duties from this date.
What do the de minimis changes mean for exporters?
For exporters currently sending low-value consignments to the US, the withdrawal of de minimis could lead to extra costs, as new import taxes, including customs duties, will now apply.
Customs declarations may also need to be completed, and it is expected that, for firms sending goods to US consumers, these will be handled by the courier (e.g. Fedex, UPS, DHL and others). Couriers are likely to charge exporters for the cost of completing the declarations, as well as for any duties and other charges the goods will now attract.
Because all imports into the US will now be subject to customs clearance, goods and their accompanying customs documentation could now also be subject to checks at the border. This could slow down the time in which goods move into the US, potentially creating unexpected delays.
Furthermore, the enormous increase in the volume of customs declarations required is putting huge pressure on border agents and IT systems.
What duties will firms need to pay?
The de minimis changes are being implemented in the same year as the Trump administration’s decision to raise ‘reciprocal’ tariffs on a majority of its trading partners. This means imports into the US will be liable to higher duty costs than at any point in the last few decades.
The duties businesses will need to pay will depend on the economic origin and commodity code of their goods. For instance, most British goods entering the US will attract a 10% duty rate provided the exporter can prove their goods are ‘UK origin’.
Goods of Chinese origin, at the time of writing, will attract at least a 30% rate, but this could change when the current 90-day suspension of a threatened 145% rate ends, should a longer-term US-China trade deal not be reached.
You should be aware that a product’s economic origin is not necessarily the same as that of the business exporting it. This is particularly the case if the goods are manufactured in or made using materials from another country. For instance, a British exporter producing goods made from Chinese materials could be subject to the Chinese tariff rate, depending on the rules associated with their commodity code.
What impact will the de minimis changes have on businesses?
The changes will have a significant impact on overseas exporters sending low-value goods into the US, especially in the international e-commerce sector which has typically benefited from the de minimis exemption.
It will particularly affect exporters whose sales strategy in the US relies on competitively low pricing. These businesses will need to decide whether to absorb the added costs, raise prices or restructure their supply chains.
SME exporters will be particularly affected, especially as the previously announced deadline was suddenly brought forward giving firms very little time to understand the implications. Small companies will be less well-placed to absorb the additional cost or administrative burden that will come with the end of the exemption.
What impact will de minimis have on consumers?
For US consumers, the end of de minimis could lead to higher prices if businesses pass on the additional costs. It could also mean slower delivery times, particularly if goods get held up for checks at the border.
In the short-term, the changes could also be disruptive, as couriers, intermediaries and border agencies grapple with the additional new checks and documentary requirements.
What’s the motivation for ending de minimis?
The White House has said that the de minimis exemption was being used by overseas exporters to “evade tariffs and funnel deadly synthetic opioids” to the US. It said the decision to bring the withdrawal forward was because it wanted “to deal with national emergencies and save American lives and businesses now”.
EU trade commissioner, Maroš Šefčovič, argued that the removal of de minimis and imposition of a €2 handling fee “is a crucial step in ensuring the EU bolsters its position in the face of rapidly changing trade realities” and is “ensuring fair conditions for its businesses”.
He continued that, “the original timeline is incompatible with the urgency of the situation”, with the vast majority (80%) of packages purchased by EU consumers coming from China in 2024.