I shared some advice in our first issue about shopping strategies for American consumers now facing vast tariffs. After a quick scroll on TikTok just now, I realised there is a lot of confusion around this subject for the average consumer. It is confusing even for people (like myself) who are running brands. Rules and rates are changing rapidly and not all edge cases are addressed clearly. There also isn’t enough infrastructure right now to deal with a ton of new package processing due to the removal of de minimis for China & Hong Kong.
My main strategy as a consumer is to reduce risk and unpredictability.
Some key ways to do that are: shopping from US based brands or retailers, shopping from international brands who have US fulfilment centers, buying items that are shipped DDP (delivery duties paid) and planning purchases when I am abroad. All of these options generally mean that the price you see is the price you pay.
Here is a quick primer for consumers wanting to understand how the tariffs are applied and ways to shop more strategically.
“How do I know if I will be charged a tariff?”
The first person to import the item into the US is responsible for paying the tariff. If you are shopping directly (D2C) from internationally based brands who do not have a US warehouse or fulfilment center, you as the customer will be responsible for the tariff.
Here’s an example: You order a skirt from a London-based brand. The skirt was made in China and ships to the US from the UK. You are responsible for the import duties, tariffs, etc.
But if it’s under $800, doesn’t that qualify for de minimis?
Technically yes, for now.
“Can I ship through a third party country so that my purchase does not incur a tariff?”
No. Tariffs are charged according to where the item was manufactured, not where it was shipped from.
Here’s an example: If you order a top from a French brand based in France but the top was made in China, when the item enters the US, it will be tariffed at the rate imposed on China. Not France.
Note that implementation of this has been varied — some people have been charged according to the Chinese origin of the good and others have slipped through the de minimis cracks and not paid tariffs due to a shipment location like Europe.
“What’s the best way to shop from international brands if I live in the US?”
Some American retailers stock international brands and you should shop from them vs the brand directly if you want to guarantee the price including delivery.
Here’s an example: You want to buy a pair of shoes from a Spanish brand. You are on the brand’s website which ships from Spain. Instead, google that product and see if you can buy it from a US based retailer (like Farfetch) or an online/local boutique.
If you can, they have already paid the import duty. The key is to look for domestic shipping options on the website or DDP.
“What does DDP mean?”
DDP is a shipping shorthand for “delivery duties paid”. Some (international) brands may offer this option which allows you to pre-pay any customs and duties at checkout. This means no unexpected fees once the item enters the US. It’s a preferable option for the consumer because you know in advance the true total of buying that item but not all brands offer it as it can place responsibility and risk on the brand.
“What if the brand is international but they have US fulfilment?”
You shouldn’t pay a tariff. If the international brand has US-based fulfilment then you should pay for domestic shipping and you will not be the importer of the product.
Domestic shipping = the brand has already imported the item into the US and you are paying for them to ship it to you locally, from US address to US address. The price you see at checkout is the price you pay.
Here’s an example: You buy a dress from Aritzia which is a Canadian brand with a large US presence. They handle all US fulfilment within the US. If you order from the American Aritzia store, you will not incur unexpected delivery charges as a result of tariffs.
The advantage of the domestic shipping approach is that you won’t be surprised with an unpredictable bill — when you buy and pay for shipping, you are guaranteeing that price for door to door delivery.
Note that brands may raise prices to offset tariffs — in this case, the tariff is baked into the price you pay. Alternatively, larger brands may choose to absorb the cost.
Either way, when you order from 1) an American brand or retailer, 2) an international brand that has fulfilment capacity within the US or 3) a retailer that ships DDP, the price you see is the price you pay.
“How come I used to buy stuff from SSENSE before and it didn’t incur import duties?”
The American consumer used to benefit dramatically from something called the de minimis exemption (Section 321 of the tariff act). It began in 1938, allowing shipments valued at $1 or less to enter the US duty-free. By 2016, that threshold had risen to $800.
TLDR: If your shipment value was under $800, you didn’t need to pay duties. The package could enter the US quickly and easily without needing detailed documentation. That is how many packages from SSENSE and indeed Temu and Shein were able to enter the US with no duties, no problem.
If the value of the shipment was over $2500, it needed formal entry which includes submitting detailed documentation. Now, many shipments even below that threshold are subject to formal documentation or more stringent and costly entry procedures.
“The import duties I was charged were higher than the tariff on that country”
Look at the breakdown of the invoice from your courier. Couriers like UPS, DHL and FedEx often charge high brokerage fees that may significantly increase the bill you’re presented with.
The couriers charge you — the consumer — for clearing the package with customs on your behalf when it arrives in the US so that delivery to you is not delayed. You can opt to clear the package yourself, but it is a complicated process that most decide not to attempt.
Sadly, they often also charge tax on the brokerage fees, your state may charge extra taxes, etc. Be sure to look at the bill breakdown to understand what is happening — it’s likely a combination of various fees, not tariffs exclusively.
In addition, there are lots of reports of incorrectly charged tariffs. We do not currently have the infrastructure to process changing tariffs on an extremely high volume of packages. If you think you’ve been incorrectly charged, contact the courier to raise a dispute.
“Is de minimis fully over?”
Currently (from May 2nd), de minimis is gone for goods that originate in China or Hong Kong. No exemptions, full tariffs and more formal processing.
For all other countries, de minimis (up to $800) is technically still applicable though interest has been expressed to remove de minimis fully for all countries.
Here’s an example: You buy a bikini shipping from Italy to the US for $100. Technically, de minimis should still apply and you shouldn’t pay customs. If your shipment value is over $800 however, your shipment is likely to face scrutiny and a blanket 10% tariff (new policy from April 2025) may apply to the dollar amount that exceeds $800. So — if the value of a purchase was $950, you should get $800 duty-free under the exemption and then pay 10% on the remaining $150.
“De minimis and tariffs are really confusing”
Yes — they often appear contradictory and need to be calculated on a case by case basis as they’re governed by different frameworks.
De minimis generally applies to shipment location with the purpose of streamlining customs procedures for low value shipments VS tariffs that apply to the manufacture location with the purpose of protecting domestic industries and responding to trade disputes.
TLDR
Shipments valued at $800 or less:
De minimis exemption applies for most countries (excluding China and Hong Kong).
No duties or tariffs are imposed under this exemption.
Shipments valued over $800:
10% baseline tariff applies to all imports, irrespective of origin.
Additional tariffs may apply based on:
Country-specific reciprocal tariffs (e.g., higher rates for certain countries).
Product-specific tariffs (e.g., steel, aluminum, automobiles).
Trade remedy measures (e.g., Sections 201, 232, or 301 tariffs).
Overall, bear in mind that there’s a difference between what the rules are “supposed” to be and what’s actually happening — the way the tariffs are being applied is not consistent and each package is being assessed individually.
Just because FedEx didn’t charge someone a tariff correctly, does not mean that they definitely will not charge you. They’re not supposed to charge tariffs up to $800, but they might. Since the tariffs have gone into effect, packages are being inspected more closely individually whereas previously, many of them were able to pass through without much scrutiny. So — mitigate risk with the aforementioned shopping strategies, or take a risk on your package. Hope this was helpful! I will try to update this regularly :)