New Tariffs and Duty Fees Impacting American Shoppers
On Wednesday, Matthew Cannon’s college-age daughter forwarded a request for payment from delivery company DHL concerning her order from Australian fashion seller I.Am.Gia. The request included duties and fees totaling $45.19 on a $65 top she purchased for the Mardi Gras celebrations in New Orleans. Cannon, who is the chief revenue officer at Reach, a Calgary-based retailer support company, was concerned about whether the DHL request was a scam, given the rush shipping made her total order $84.
Understanding the New Duty and Fee Structure
DHL’s breakdown of the fees included $26.88 for import duties, $17 for handling, and a warning that payment was due within five days of the package’s arrival, or the item would be sent back. This situation is concerning, particularly as it emerges alongside the imposition of new tariffs on imported goods from China.
U.S. President Donald Trump recently imposed a 10% tariff on Chinese goods, along with an abrupt end to the “de minimis” rule, which previously exempted low-value packages from customs duties. The de minimis threshold allowed for waiving tariffs on imports valued under $800, thus facilitating more affordable online shopping. The change comes in the context of broader efforts to combat the influx of substances such as fentanyl into the U.S.
American consumers who enjoy bargain shopping from platforms like Shein and Temu PDD are now facing significantly higher costs due to these tariffs. Simple purchases—a $5 shirt, a $10 lamp, or even a $20 pair of shoes—will become more expensive under the new regulations.
Real-World Impacts on Shoppers
In a similar incident, Clint Reid received a DHL notice for a $197 order that included dresses, sweaters, and baby clothes from Shein, highlighting another case where online shoppers suddenly found themselves unexpectedly liable for duties. The fees totaled $39.07, with $20.76 classified as import duties, alongside additional charges like regulatory fees and processing costs.
These developments ruthlessly illustrate how U.S.-based customers will feel the impact of Trump’s trade policies. As private delivery services and the United States Postal Service process millions of e-commerce packages, shoppers are waking up to the reality that online buying experiences will be more expensive. Cannon noted that shoppers outside the U.S., such as in Europe and Canada, are accustomed to paying duties on online purchases, stating, “No one in the U.S. has any idea—unless they bought something really expensive, the retailer typically covers the duties.”
Delivery Services Respond
Delivery companies like DHL and UPS are adapting to the changes and emphasizing their role in logistics and customs clearance. DHL confirmed it has a standardized fee structure for customs, which is in addition to government taxes and duties. Meanwhile, as sellers scramble to adjust their operations, some have begun absorbing duties in the short term to retain customer loyalty.
Retailer I.Am.Gia, for example, informed customers that duties would be collected through the delivery service for orders placed starting February 7. Similarly, Cider, another fast-fashion retailer, has warned customers of possible shipping delays due to extended customs clearance times, reflecting the processing challenges that these changes bring.
Looking Ahead: A Need for Consumer Awareness
As American consumers become more aware of these changes, it is crucial for them to understand how tariff and duty structures can affect their online shopping experiences. With e-commerce becoming increasingly competitive, these heightened costs could alter buying behaviors and raise questions about the future of cross-border shopping.
For now, shoppers like Cannon and Reid must navigate new financial hurdles that they previously did not encounter—a stark wake-up call in an evolving landscape of online retail.