Online Shopping in the Tariff Era

The de minimis exemption is a long-standing trade policy that has allowed U.S. shoppers to buy goods worth $800 or less directly from online sellers 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. 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. (For goods shipped through the U.S. Postal Service, a specific duty ranging from $80 to $200 per item may be applied instead, but only for the first six months.)²

Since August of 2025, most imported goods have been subject to Trump’s reciprocal tariffs, which vary by specific trading partner and range from 10% to 50%.³ 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. Other countries, including members of the European Union and Canada, have lower thresholds, so consumers who live there may already expect to pay duties.⁴

Look closer 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 e-commerce business.

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.

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.

If you have questions, contact the experts at Henssler Financial:

• Experts Request Form
• Email: experts@henssler.com
• Phone: 770-429-9166

1–2) The White House, July 30, 2025;
3) The Wall Street Journal, August 11, 2025;
4) New York Magazine, April 24, 2025

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