Online Shopping in the Tariff Era
The de minimis exemption was a long-standing trade policy that has allowed U.S. shoppers to buy goods worth $800 or less directly from online marketplaces based outside of the United States without having them pass through customs or incur duties.
The term “duty” refers broadly to multiple types of fees paid by importers when goods are shipped across borders. Depending on the type of product and where it originated, this amount might include tariffs, customs brokerage fees, excise taxes, and/or other miscellaneous charges. A tariff is a tax on imported goods that the Trump administration has imposed to help protect domestic industries from foreign competition, raise revenue, and use as a bargaining chip in trade negotiations.
The $800 exemption threshold was meant to simplify trade, which helped streamline supply chains and reduce costs for small businesses and consumers. However, critics believe it has disadvantaged U.S. manufacturers and retailers and created a loophole for dangerous and illegal products, such as fentanyl and counterfeit goods, to enter the United States with less scrutiny.1
Demise of de minimis
On April 2, 2025, President Trump issued an executive order eliminating the de minimis exemption for low-value imports from China. This was just his first step toward ending duty-free de minimis privileges entirely, as a provision in the One Big Beautiful Bill Act eliminated de minimis entries from all countries beginning July 1, 2027. Then on July 30, 2025, an executive order moved up that timeline by making low-value goods subject to any applicable duties effective August 29, 2025.
This makes it trickier and more expensive to shop internationally, and deliveries can take longer. Some U.S. shoppers have been surprised by notices from shipping carriers requesting duties, in many cases because Americans are used to shopping for low-cost goods, such as clothing and housewares, without considering where their purchases are shipped from or the prospect of duties.
Take a closer look before you click
When you shop on a U.S.-based e-commerce site, whether it’s a small business or a behemoth like Amazon, the duties on imported goods have already been paid and are reflected in the price. Still, you could unknowingly trigger duties if you respond to a targeted ad or come across a product offered by a foreign online marketplace.
One complication is that the duties apply to goods based on where they are made, even if they are sold online by a company that is based in a different country. Check the website before ordering or ask customer service where the product ships from. If the order won’t be fulfilled in the United States, go a step further to determine the product’s country of origin.
Americans are used to shopping for low-cost
goods, such as clothing and housewares,
without considering where their purchases are
shipped from or the prospect of duties.
When duties apply to an item in your online shopping cart, you might see a reference to delivered duty paid (DDP) shipping, which typically means the duties will be included in your charges during the checkout process and paid by the shipper. Delivered duty unpaid (DDU) or tax unpaid shipping means you should expect to receive a bill from the carrier.
If you are caught off guard by duties for an online order, you could choose to pay the duty or refuse the package. Depending on the company’s return policies, you might be charged for return shipping or may not receive any refund. Unexpected duties may become less frequent in time as international sellers and U.S. buyers adjust to the new rules. But unfortunately for consumers, the higher costs that stem from tariffs might be here to stay.
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