End of U.S. de Minimis Exemption Sends Shockwaves Through Europe’s Logistics Sector

From August 29, all non-postal consignments to the U.S. valued under $800 will lose duty-free status under an executive order signed by President Donald Trump. Every package must instead pass through full U.S. customs entry, attracting all applicable duties, taxes and fees. 

Postal providers across Europe are suspending shipments to the U.S. amid uncertainty about how duties will be collected.

While postal flows stall, some logistics providers are exploring alternative models. Transport Intelligence reports that some companies are using Canadian and Mexican depots or U.S. free trade zones to consolidate inventory and feed consignments into the U.S.

The removal of de minimis is expected to reroute more than a billion parcels annually into formal customs processes. U.S. brokers have described the change as “the largest paperwork shock in a decade,” pointing to millions of informal entries that will now require full classification. Longer dwell times at ports and express hubs are anticipated as systems adjust.

Read more in an article from Trans.info.