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Trump's tariffs on China bite US bargain-hunting online shoppers
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Trump's tariffs on China bite US bargain-hunting online shoppers
Feb 6, 2025 4:02 PM

*

Delivery firms start collecting new e-commerce import

taxes on

goods from China

*

New duties apply to millions of e-commerce purchases and

are

sending prices higher

*

Bills for new duties show how Trump's trade and tax

policies

affect U.S. consumers

By Lisa Baertlein, Arriana McLymore and Helen Reid

LOS ANGELES/NEW YORK, Feb 6 (Reuters) - On Wednesday,

Matthew Cannon's college-age daughter forwarded him a request

from delivery company DHL asking for duties and fees of $45.19

tied to her order from Australian fashion seller I.Am.Gia. She

wanted to know if it was a scam.

She had ordered a $65 top to wear for Mardi Gras

celebrations in New Orleans on Tuesday, and paid for rush

shipping bringing the order total to $84.

DHL's message included breakdown of the fees, including

$26.88 for duties and $17 for handling, and said it was due

within five days from the package arrival date or the item would

be returned to the sender.

Prices will rise for Americans who buy $5 shirts, $10 lamps

and $20 shoes on direct-from-China shopping sites like Shein and

Temu after U.S. President Donald Trump this week imposed

10% tariffs on goods from China.

He also suddenly scrapped the so-called de minimis rule for

Chinese goods, a customs duty exemption on low-value packages

from China with the stated aim of stopping the flow of fentanyl

and precursor chemicals into the United States.

De minimis, a legal term referring to matters of little

importance, describes the U.S. waiver of standard customs

procedures and tariffs on items worth less than $800 that are

shipped to individuals from foreign countries.

American shoppers must now pay duties for small-value

direct-from-China orders, including for merchandise that was

already en route before the shift.

"This was a $65 top that she could barely afford and now she

has to pay $50 just to get it," said Cannon, who is chief

revenue officer at Reach, a Calgary, Canada-based company that

helps retailers in Europe, Australia and China sell into the

United States.

Similarly, on Tuesday, Clint Reid got an email from DHL

saying that a $197 order for 16 items including dresses,

sweaters and baby clothes from Shein would be returned to sender

if he did not pay $39.07 within five days of arrival.

That charge included $20.76 in import duties, $1.31 in

regulatory charges and $17 in duty tax processing.

E-commerce firms such as Shein, Temu and

Amazon.com's ( AMZN ) Haul service have proliferated to take advantage

of low-value duty-free shipments to U.S. shoppers.

As of February 4, shippers or receivers must pay duties on

all China and Hong Kong-origin products under the $800

threshold, regardless of how they are routed into the U.S.

Shein, Temu and Amazon ( AMZN ) did not immediately respond to

requests for comment.

Private delivery companies and the United States Postal

Service deliver millions of e-commerce packages that are now

subject to import taxes.

As bills for duties owed start hitting text message queues

and e-mail inboxes, U.S. shoppers are waking up to how Trump's

trade and tariff policies directly impact their lives - and

pocketbooks.

Shoppers in Europe, Canada and other markets with much lower

de minimis thresholds are familiar with paying duties on online

purchases, Cannon said.

"No one in the U.S. has any idea, they've never experienced

it unless they bought something really expensive and typically

if they buy something really expensive the retailer will cover

the duties," Cannon said. "It's going to be a nightmare."

DHL Express told Reuters it has a standardized set of fees

and handling charges that apply for the customs clearance

process. These fees are in addition to government taxes and

duties. United Parcel Service ( UPS ) the world's biggest parcel

delivery firm, said it also has systems and processes to

facilitate payment of duties. FedEx ( FDX ) did not immediately comment.

While sellers scramble to adapt, some are "eating the duties

in the short term," said Bernie Hart, vice president of customs

at Flexport, which offers customs, logistics and other

freight-related services.

In a message on its website, youth-oriented fashion seller

I.Am.Gia said U.S. customers would be asked to pay duties

through the delivery company. For orders placed from February 7,

the duties will be included in the price and partially offset by

"slight" adjustments to prices and shipping threshold. It did

not immediately respond to requests for comment.

Cider, a fast-fashion retailer that also ships direct to

U.S. shoppers from factories in China and elsewhere, had a

notice on its website saying shipping may be delayed "due to

extended customs clearance times". A spokesperson did not

immediately reply to Reuters questions about the delays.

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