Editor’s Note
This article examines the massive volume of low-value imports entering the U.S. under the “de minimis” rule, which exempts shipments under $800 from tariffs. As trade experts note, the sheer scale of these imports raises important questions about trade policy, enforcement, and economic impact.
A whole lot of items worth less than $800 are imported from overseas: Between October 2023 and September 2024, 1.36 billion de minimis shipments entered the US. But because those items weren’t especially valuable, buyers didn’t have to pay tariffs on them.
In June, items made in China or Hong Kong sent via the international postal network were subject to a tax of either 54% of their value or a flat rate of $100 per postal item. Products shipped through services such as FedEx, DHL, and UPS were “subject to all applicable duties,” which, broadly speaking, meant the 30% tariffs for products from China.
In early May, those numbers were as high as 120% of their value for postal items and 145% for products shipped by courier, which is how we ended up with a $158 ukulele.
Starting on August 29, all international shipments — including those from Canada and Mexico — will be subject to duties.
I placed orders at AliExpress, Amazon Haul, Quince, Shein, and the aforementioned China-based headphones company to arrive at customs after the de minimis exemption was lifted. I also spoke to four international-trade attorneys, as well as representatives from US Customs and Border Protection, DHL, FedEx, and UPS, all to figure out: Who’s on the hook for these bills? How much can you expect to pay? And how does this change online shopping?
Many retailers are doing what they can to avoid passing on surprise fees to shoppers. Some have raised prices, added import fees at checkout, and promised not to charge buyers extra at delivery. One gaming-handheld maker, Retroid, has even offered to cover any unexpected customs charges. In May, Temu and other retailers paused shipments from China and limited fulfillment to US warehouses. Some companies, such as Quince, rapidly moved manufacturing operations away from China — though we’ll see if manufacturing shifts like this stick after August 29, when the de minimis exemption ends for all countries, not just China and Hong Kong.
But despite everything retailers are doing to help, if the full fee isn’t collected when you purchase an item, you could be on the hook for a customs bill at delivery. Here are a few simple steps you can take to shop wisely, and what your options are if you get a surprise bill.
You don’t have to worry about a customs bill unless your purchase is coming into the US from another country. If you buy something that ships locally from a US retailer — such as first-party purchases from Amazon, Best Buy, or Walmart — or a warehouse located in the US, the import fees have already been paid and are included in the price you pay at checkout.
But it’s easy to click that buy button without even thinking about it. Friedman, for example, recently purchased a new watch band and didn’t realize it was shipped from Montreal until he received the FedEx shipping notification.
To find out where a product ships from:
– Look for warehouse options. Some companies allow you to choose whether your order is shipped from a US warehouse or an international warehouse.
– Check the company’s shipping-policy page. It may say where a product ships from or contain information on warehouse locations for different regions. This page can also provide information on which shipping carrier the seller works with.
– Ask customer support. Take this step, but keep in mind that in our experience, some chat-support representatives didn’t know the answer or provided inaccurate information. If you do this, save the conversation and order with a payment method that provides buyer protection in the event that you have to dispute unexpected charges.
If your order is shipping internationally — from any country, including Mexico and Canada — you should confirm where the product was made. The tariff is determined based on this, the country of origin.