Tech Matters: How to avoid surprise tariff fees
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Leslie MeredithLast week, I had the opportunity to meet with freight forwarders from all over the world at a conference in Marrakech. Most of these people handled containerized goods — not a cargo I typically report on — so I wanted to know about tariffs. Specifically, I wanted to know how the duties were being handled from foreign businesses shipping to consumers in the U.S. Yes, I had you in mind. Their answers varied, but with some research I can tell you how to navigate this new challenge around lower-value shipments that up until recently were delivered duty-free.
Between October 2023 and September 2024, 1.36 billion shipments valued at under $800, referred to as de minimis shipments, entered the U.S. But because those items weren’t especially valuable, buyers didn’t have to pay tariffs on them. Now you do, and how much you pay depends on the tariff rate and where the goods were made.
As of May, the U.S. has eliminated the de minimis exemption for shipments from China and Hong Kong. That means if you order something made in China or Hong Kong, even if the brand is European, you’re likely to be hit with a customs fee. Many online sellers haven’t updated their checkout process to reflect these changes, so you may not find out until your package is already in transit — or at your door.
What’s made this especially frustrating is the element of an unwanted surprise. In some cases, consumers have reported receiving bills from carriers like UPS or DHL totaling hundreds — even thousands — of dollars. Typically, the fees must be paid before or when the package is delivered.
DHL paused all shipments over $800 to U.S. consumers in April while it adjusted to new customs rules. The company resumed service a week later but now requires more formal customs entry procedures for anything over $800 in value. UPS and FedEx followed suit.
The U.S. Postal Service handles things differently. Because USPS operates under government-to-government postal agreements, it sometimes allows delivery with a customs bill attached or holds the item at your local post office for pickup and payment.
Carriers like UPS and DHL are functioning as customs brokers — collecting duties on behalf of U.S. Customs and Border Protection and tacking on their own processing fees. For example, UPS reinstated a $0.29 per pound “surge fee” on imports from China, Hong Kong and Macau in March. FedEx updated its disbursement and handling fees in May. These aren’t duties set by the government but surcharges tied to the cost of compliance. They’re also not always obvious at the time of purchase.
So how can you protect yourself?
- Know the shipping origin and product origin. As long as the order ships from within the U.S., you don’t have to worry about extra fees. But just because a seller is based in Europe doesn’t mean the product was made there. Tariffs apply based on where the item was manufactured. European companies that source from China still face the same duties as Chinese sellers. Review shipping policy pages and contact customer service if you can’t find the information.
- Look for DDP — Delivered Duty Paid — at checkout. Some sellers include customs fees in the total you pay at the time of purchase. That’s the ideal scenario. If the terms are “DDU” (Delivered Duty Unpaid), that means you’ll be responsible for paying duties when the item enters the U.S.
- Avoid surprise bills by watching your inbox. UPS and DHL typically notify customers by email or text with a payment link. If you miss it, your package may be delayed or returned. These carriers will not deliver until duties and fees are paid.
- Choose retailers that disclose all costs. Some big platforms are starting to show estimated duties before you check out. Others remain vague. If the seller doesn’t clearly address customs, you may want to think twice.
Behind the scenes, freight companies are handling a tidal wave of customs declarations. The volume of lower-value shipments hasn’t slowed — but the paperwork and compliance burden has increased dramatically. UPS, DHL and FedEx are doing what appears to be a very efficient job collecting fees. Maybe too efficient.
Could the exemption be eliminated across the board? If tariff revenue from small shipments proves significant, other trading partners could see the same treatment.
For now, shop smart, ask questions and check twice before clicking “buy.” In fact, buying your products that ship from within the U.S. is the best way to avoid surprises.
Leslie Meredith has been writing about technology for more than a decade. As a mom of four, value, usefulness and online safety take priority. Have a question? Email Leslie at asklesliemeredith@gmail.com.
