The regulatory walls are closing in on the de minimis exemption that has long allowed ultra-cheap imports from platforms like Temu and Shein to enter Western markets duty-free — but whether those walls will actually slow the cross-border e-commerce giants remains an open question. In the United States, the de minimis exemption for shipments under $800 remains suspended following an executive order from President Trump, and a recent Supreme Court ruling on tariffs did not restore it, as Marketplace reported in March.
The legal picture in the U.S. is still developing. As Retail Dive noted, the U.S. Court of International Trade has allowed a case brought by auto parts retailer Axle of Dearborn to proceed, challenging the executive branch's authority to nullify the exemption without congressional action. Meanwhile, Supply Chain Dive reported that the Supreme Court's February 20 ruling invalidating IEEPA-based tariffs was silent on whether it applied to the de minimis suspension, leaving the exemption in regulatory limbo.
Across the Atlantic, the European Union is taking a more definitive approach. The European Council has agreed to impose a flat customs duty of three euros on small parcels valued at less than 150 euros entering the EU, effective July 1, 2026, as Ecotextile News reported. European finance ministers accelerated the timeline by two years, driven by the fact that Chinese parcels comprise an estimated 91 percent of all low-value packages entering the EU under the exemption, according to Women's Wear Daily.
The rationale extends beyond trade fairness. EU officials have cited health and safety risks, high levels of fraud, and environmental concerns tied to the flood of low-value packages, as SupplyChainBrain reported. The sheer volume of small parcels overwhelms customs inspection capacity, making it nearly impossible to verify product safety compliance or enforce environmental standards at scale.
However, experts caution that the platforms themselves may be better positioned to absorb these changes than many assume. As Marketplace Universe noted, Temu is already shifting operations to local warehouses in Europe, a move that would allow it to bypass many of the new customs duties by shipping goods in bulk and fulfilling orders domestically. Both Temu and Shein have proven remarkably agile in adapting to regulatory shifts, and analysts expect them to adjust pricing models, restructure logistics, and potentially absorb short-term cost increases to maintain market share. The de minimis loophole may be closing, but the competitive challenge these platforms pose to traditional retail is far from resolved.