De Minimis Repeal Pushes Shein and Temu Prices Up, US Sales Down
Ending the $800 de minimis exemption raised Shein and Temu prices, cut Shein's US revenue 14% in Q1 2026, and hit low-income shoppers hardest.
"De minimis" refers to the value threshold below which imported goods can enter a country with simplified paperwork and little or no customs duty. For years, these rules let low-value shipments cross borders quickly and cheaply, such as a phone case, a T-shirt, or a craft supply ordered from overseas. In the United States, the threshold was long set at $800 per shipment. The European Union waived customs duties on parcels valued under €150.
That arrangement is now under intense scrutiny. Cross-border e-commerce has grown rapidly, led by marketplaces such as Temu, Shein, and Amazon, and the volume of small parcels has soared. Policymakers argue that the exemptions give overseas sellers an edge over domestic retailers, strain customs inspection capacity, and make it harder to screen for unsafe or counterfeit products. In response, governments on both sides of the Atlantic are rewriting the rules. They are suspending exemptions, introducing per-parcel charges, and tightening entry requirements.
These shifts ripple across the retail economy. Shoppers may see higher prices and slower deliveries. Platforms are rethinking fulfillment and warehousing strategies. Postal operators and logistics firms face new compliance burdens and phased transition timelines.
Follow this page for ongoing coverage of how the economics of low-value imports are being reshaped.
Ending the $800 de minimis exemption raised Shein and Temu prices, cut Shein's US revenue 14% in Q1 2026, and hit low-income shoppers hardest.
The US made its $800 de minimis suspension permanent in June 2026 as the EU imposed a €3 duty on parcels under €150, with a handling fee due in November.
UPU chief Masahiko Metoki says the EU's new charges on parcels under €150 could hit global postal and logistics networks as Temu and Shein volumes fall.
Amazon, Temu and AliExpress lead Europe's top 100 cross-border marketplaces, which grew 16% to €176bn in 2025, as the EU ends duty-free imports of small
CBP indefinitely suspended the $800 de minimis exemption and created a postal entry process, now delayed to Jan. 20, 2027, as the EU adds a €3 parcel duty.
Temu and Shein have raised prices and shifted to local warehouses as the US ended its $800 de minimis rule and the EU imposed a €3 duty on low-value parcels.
The US suspended its $800 de minimis exemption by regulation and is building new parcel entry rules, while the EU replaced its €150 relief with a €3 per-item