The end of cheap “cheap orders”: customs and taxes await small packages in the US, and soon in the EU

By: Trademagazin Date: 2025. 08. 29. 12:01

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For years, Western consumers enjoyed ordering small items from abroad for just a few dollars or euros without paying customs duties or taxes. That era, however, seems to be coming to an end: at the end of August, the United States abolished the de minimis threshold, meaning that packages valued under $800 are now also subject to customs duties and taxes. The decision affects not only Chinese online giants such as Shein and Temu, but also directly impacts consumers and logistics chains, leading to higher prices and longer delivery times – as highlighted by a Portfolio article.

The essence of the de minimis rule was that goods imported under a certain value were exempt from customs duties. In the U.S., this threshold had been set at $800 since 2016 – one of the highest in the world – which allowed households to order billions of low-cost items from abroad. In 2024 alone, for example, 1.36 billion parcels arrived under this exemption, totaling $64.6 billion in value.

U.S. retailers have long criticized the system, arguing that foreign sellers gain an unfair advantage, since they often avoided paying customs duties and sales taxes, while domestic companies had to factor these costs into their prices. Customs authorities were also overwhelmed by the flood of uninspected small parcels, which sometimes contained counterfeit or unsafe goods.

According to the new regulation, all packages under $800 are now subject to customs duties and taxes, with the sole exception of gifts and documents under $100.

The biggest impact will be felt in prices and delivery times.

Customs and tax payments can now be made online in advance, upon delivery, or via a separate customs notification – each option requiring additional administration.
Certain categories, such as clothing and electronic accessories from China, may become 20–30 percent more expensive.
Deliveries may also take longer due to customs clearance, especially for products ordered from smaller platforms.

Some more conscious consumers are likely to turn to domestic retailers to avoid customs fees and delays.

In the European Union, the current threshold is €150, but the Commission has already prepared a reform plan to eliminate this exemption. From 2026, all import parcels in the EU are expected to be subject to customs duties and taxes, processed through a standardized digital system.

According to EU communications, the goal is to ensure fair competition, consumer protection, and the prevention of tax evasion. For everyday shoppers, however, this will mean that the previously cheap foreign orders will come with customs costs and longer processing times.