
The abrupt end of the de minimis tariff exemption threatens to upend global e-commerce, sparking a major disruption in U.S.-European trade.
Story Overview
- End of de minimis exemption halts European postal shipments to the U.S.
- Major European postal operators suspend U.S.-bound merchandise shipments.
- U.S. consumers and small businesses face significant disruptions and higher costs.
- European postal services criticize the lack of operational guidance from the U.S.
Policy Shift Ends De Minimis Tariff Exemption
On August 29, 2025, the U.S. officially concluded the de minimis tariff exemption for low-value imports under $800. This policy, long regarded as a facilitation for cross-border e-commerce, was axed in an effort to curb tariff evasion and boost customs revenue. However, the decision has caused confusion and operational hurdles, particularly for European postal services, which have responded by halting shipments to the U.S.
The de minimis rule had been a cornerstone of international e-commerce, allowing over 1.36 billion packages valued at $64.6 billion to enter the U.S. duty-free last year. Removing this exemption aims to address concerns over tariff evasion and illicit imports. Nonetheless, the sudden shift has left European operators, like Deutsche Post and Poste Italiane, in a bind, unsure of how to comply with the new regulations.
Immediate Impact on Global Trade
The immediate suspension of shipments by European postal services, including those in Germany, Italy, and Denmark, underscores the widespread impact of this policy change. These services have been pivotal in facilitating international trade, particularly for small businesses that rely on affordable shipping options. The halting of shipments has left numerous small businesses and consumers in the lurch, unable to access goods or fulfill orders as usual.
While some commercial couriers like DHL Express continue operations, they face increased compliance requirements and potential cost hikes. The lack of timely operational guidance from U.S. authorities has been a significant point of contention for European postal operators, who argue that the absence of clear directives has exacerbated the disruptions.
Long-term Consequences and Reactions
The broader implications of this policy shift extend beyond immediate logistical challenges. Experts suggest a potential restructuring of global e-commerce logistics, with options such as establishing U.S.-based distribution centers becoming more attractive for international sellers. However, this could lead to increased prices and reduced consumer choices in the U.S., affecting lower-income consumers the most.
Why Germany and Italy have suspended shipments of most merchandise to the U.S., effective immediately https://t.co/HpWO0Fvt08 #sales #sellmybusiness
— Damon Pistulka (@dpistulka) August 25, 2025
Trade experts also warn of heightened trade tensions between the U.S. and Europe, as well as a possible reduction in cross-border e-commerce volumes. The policy shift has drawn criticism from various stakeholders, including European trade groups and logistics providers, who have called for more comprehensive planning and communication to mitigate the economic and social impacts.
Sources:
FlavorCloud (logistics industry analysis)
Australian Government Export Portal