Europe's proposed feel-good tax on parcels and ecommerce might please politicians in Brussels, but entrepreneurs face a mountain of red tape and additional costs as a consequence.
At a time when Europe is talking about easing business burdens to boost competitiveness, these changes would do the opposite.
The European Union has proposed to eliminate its de minimis threshold, the policy that exempts small-value imports under €150 from customs duties. Paired with a proposed handling fee on all imports, these changes would deliver a double blow to small businesses, threatening their ability to participate in cross-border commerce.
This isn't only a technical trade adjustment. It's a policy choice that will shape whether Europe's future is driven by entrepreneurial innovation or by concentrated market power.
The Small Business Reality
The biggest impact of these changes would be felt by EU-based businesses that rely on global suppliers. These are the entrepreneurs importing spare parts, small retailers sourcing inventory, and creators building global brands.
Small businesses lack the scale and capital for these arrangements, and would pay quadruple the rate of their larger peers
The average package value entering the EU is less than €50. For the UK, it's under £30.* These are not luxury imports, they are the modest transactions that keep small businesses alive.
Small and medium-sized enterprises (SMEs) make up ~99% of all EU businesses. They are a crucial part of our economic and social fabric, driving innovation, employment, and growth. These businesses generally don't have compliance teams or the cash flow to absorb new costs. What they do have is passion, creativity, and determination—qualities that built Europe's economic foundation.
Flat Fees Penalize the Smallest Players
The proposed handling fee creates a fundamental inequity. A flat €2 fee on a €10 product represents 20% of its value, enough to erase most profit margins. The same €2 on a €1,000 shipment is negligible.
Large corporations can try to navigate this cost through bulk importing and customs warehouses, potentially qualifying for reduced fees of €0.50 per item. Small businesses lack the scale and capital for these arrangements, and would pay quadruple the rate of their larger peers.
This does not promote genuine competition. This is a structural disadvantage presented as regulatory reform.
Some suggest these changes improve product safety and customs control. But bad actors don't disappear when you eliminate de minimis—they adapt. These changes will not make trade safer, only less accessible.
A Better Path Forward
Balanced reform is possible. Targeted regulatory improvements can strengthen oversight and keep market access open, as long as new regulations do not put disproportionate costs on small businesses.
Keep the de minimis threshold. It's not a loophole, it's an essential lifeline enabling cross-border commerce for entrepreneurs. Target abuse through enhanced digital tracking and intelligence-led enforcement instead of blanket elimination.
As EU policymakers debate these reforms, they are deciding on more than trade policy. They will determine whether Europe’s economy remains open to the many or protects the few
Reject the proposed handling fee. If administrative costs must be recovered, structure fees proportionate to shipment values, rather than as flat rates that punish small transactions.
Third, create automatic exemptions for small businesses on any new requirements. Recognize that these businesses cannot navigate the same procedures as multinational corporations.
The Choice Ahead
As EU policymakers debate these reforms, they are deciding on more than trade policy. They will determine whether Europe’s economy remains open to the many or protects the few.
Entrepreneurs form the backbone of Europe's economy, and the proposed changes will systematically disadvantage those businesses. This is not truly a debate about Asian imports or regulatory capacity, this is about Europe’s commitment to entrepreneurship.
Entrepreneurs don't need exemption from trade, they need fair treatment in trade: balanced rules, reduced barriers, and policies designed for modern commerce.
When someone takes the bold leap into entrepreneurship, Europe should provide the runway. Not the red tape.
* Shopify data
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