The US De Minimis Rule: What Its End Means for Your Shipping

To see how dramatic the new situation is, you need to understand what the old rule meant. Since 1938, the US had a low-value threshold for small shipments. It started at a tiny $1 and was raised step by step. In 2016, the Obama administration finally set it at $800, one of the most generous thresholds in the world.

The result: an e-commerce boom. European startups, small workshops and mid-sized businesses could sell straight to American consumers with little effort. For US authorities it was a relief, sparing them millions of costly customs procedures for tiny shipments. For consumers it was an invitation to shop worldwide.

That is exactly the model now being dismantled.

From August 29, 2025: every shipment from Europe is subject to full import duties and formalities. The rollout comes in two stages:

1. Transition period until February 2026: Parcels sent through postal services such as Deutsche Post, La Poste or Royal Mail face steep flat fees:

   • Duty rate up to 16%: $80 per parcel.

   • 16 to 25%: $160.

   • Over 25%: $200.
     In other words, even a 20-euro T-shirt can cost the recipient more than $100.

2. From March 2026: The full customs system applies. Every shipment must be declared by tariff code and go through all the formalities. Sellers must include invoices, state the country of origin correctly and, if in doubt, accept lengthy clearance.

This is not just about cost. It also means longer delivery times, higher return rates and serious uncertainty for customers, who no longer know what their purchase will actually cost in the end.

The White House argues the de minimis rule was a loophole for fentanyl smuggling. In reality, every statistic shows that the vast majority of fentanyl comes in via Mexico, not in small parcels from Europe or Asia.

The real reason is obvious: protectionism. Trump wants to make imports more expensive to strengthen domestic producers and improve the trade balance. That American consumers and millions of small businesses worldwide end up footing the bill is accepted as the price.

For European entrepreneurs, it is a setback, but also a wake-up call: if you want to keep selling in the US market, you need to rethink.

The new rules hit small and mid-sized exporters hardest. Large corporations with US subsidiaries already handle this professionally, while many small businesses have simply shipped their goods from Europe.

An example:
A small jewelry workshop in Vienna sells necklaces on Etsy for 70 euros. Until now, they shipped to the US without a hitch. From the end of August, every single shipment carries at least $80 in extra costs, almost more than the value of the goods.

Or take a German startup making sustainable clothing that ships to the US from its own online store. A 120-euro hoodie will now carry duty, handling fees and possibly import taxes on top. Many American customers will simply walk away.

The result: shipping directly from Europe is losing much of its appeal.

The central question now is: what do you do? Businesses are at a crossroads. Essentially, there are three scenarios:

1. Keep shipping from Europe

• Pro: No major restructuring; existing processes stay as they are.

• Con: Sharply higher costs, rising returns, a shrinking customer base.

• Bottom line: Only makes sense for high-priced, exclusive products where customers are willing to pay duties and fees.

2. Consolidated shipping / bulk shipments

• How it works: Several orders are bundled into one shipment and split up in the US by a service provider.

• Pro: Duties are charged only once, on the whole shipment.

• Con: Complex logistics, dependence on fulfillment partners, often inflexible.

• Bottom line: Interesting for some sellers, but not a lasting solution for the mass market.

3. Build a US presence

• The idea: Instead of importing every parcel individually, you export goods to the US in larger quantities, clear customs there and keep them in a warehouse or fulfillment center.

• Pro: Duties are due only once, on import; after that, delivering to US customers works like a domestic business.

• Con: Upfront costs for a warehouse, staff or a partner. Legal questions such as company formation, taxes and liability need to be sorted out.

• Bottom line: The best strategic solution for anyone serious about serving the US market.

Many European businesses will have no choice but to consider forming a US company. That kind of structure brings several advantages:

• Simpler customs: Goods are imported into the US and cleared once. After that, they count as domestic.

• Closer to your customers: Faster delivery, no nasty surprises at the door.

• A more professional setup: A US company signals reliability to customers and business partners and makes it easier to access local bank accounts and payment providers; whether you get a US credit card is up to the issuer after its own review.

• Tax advantages: With the right structure (for example an LLC or a corporation), you can optimize your tax burden.

Of course, this is not a step to take lightly. But with the new duties, it may be the only way to keep serving the US market profitably.

The EU is also flirting with abolishing, or at least restricting, its de minimis rule. The plans are less radical, but the direction is the same: more regulation, more charges, less free trade.

The debate over a 2-euro parcel fee is just a foretaste. At the same time, Brussels is forcing sellers to comply with ever more complex rules, from environmental requirements to complicated labeling obligations.

The trend is clearly toward new trade barriers. Businesses need to prepare for a world where global e-commerce is no longer as free and simple as it used to be.

Ending the de minimis rule in the US is not a detail; it is a turning point. It changes the rules of the game for international trade, especially for small and mid-sized businesses in Europe.

If you want to keep selling successfully in the US, now is the time to act: adjust your pricing, rethink your logistics, build US structures.

The good news: with the right strategy, the US market is still within reach. But the golden days of easy shipping from Europe are over.

If you are a European entrepreneur who wants to enter or hold on to the US market after the end of the de minimis rule, we are here for you. We advise you on questions like:

• Should I keep shipping from Europe, or am I better off building a US presence?

• Which entity suits my business model: an LLC, a corporation or a hybrid structure?

• How can you minimize duties and taxes without taking on legal risk?

• What logistics solutions are there to handle fulfillment and customer service locally?

For many years, Mount Bonnell Advisors has helped European entrepreneurs enter the US market. With our experience in commercial law, tax law and corporate structuring, we help you make the right decisions and protect your business against the new trade barriers.

Book a consultation now

Consultation & implementation

If you'd like to find out what this means for your own situation, the best step is to book a consultation.