New 2025 US Tariffs: A Survival Guide for International Etsy & Shopify Sellers

A Tariff‑Survival Guide for International Etsy & Shopify Sellers

On 30 July 2025 the White House issued an executive order that abolishes the US $800 “de minimis” exemption for all countries, effective 29 August 2025. That means every parcel you ship direct‑to‑consumer into the United States must now clear customs, declare its HS code and pay duty.

Customs & Border Protection (CBP) has simultaneously rolled out new ad‑valorem duty bands of 10 %–50 % that replace the flat 10 % surcharge first applied in April. Rates vary by origin country and product category.

For makers in the EU, UK, Canada, Australia, Japan and beyond, this is the biggest compliance shock since GDPR. If even 15 % of your orders cross the Atlantic, your gross margin—and your customer experience—just changed overnight.

Wondering how the new Etsy tariffs or Shopify tariffs will hit your biz? You’re in the right place—this guide breaks down every fee and gives you practical next steps.

Quick timeline of Etsy & Shopify tariff rule change

Before we dive into the nitty‑gritty, here’s a quick look at how the rules have evolved so you can see the road we’ve travelled and understand exactly where things stand today.

What the new duties look like: A Real World Example

Example: a €40 (£34 / A$62) handmade ceramic mug shipped from Portugal to a buyer in California.

…also consider the extra shipping weight of paperwork, slower delivery (brokerage scans often add 24 h) and potential returns processing, and it’s clear it’s a sticky situation.

So, what can you do right now?

First, take a deep breath. Yes, the new rules add a few hoops, but thousands of small makers have already adjusted—and so can you. The key is to treat tariffs like any other production cost: understand them, price them in, and communicate clearly with buyers. The following steps will help you do exactly that.

Reassess your fulfillment process

Choosing the right fulfilment path is your number one way of gaining control over the uncertainty and complexity of tariffs. It’s now way more than a logistics decision—it’s the difference between a happy repeat buyer and a one‑star “surprise duty” review.

Each model below effectively shifts where the duty is paid, how much it costs, and how smoothly your parcel glides through CBP. Use the comparison below to pick the route that safeguards your margins and your customer’s unboxing moment.

Be transparent with duties

Flip on the “Duties and import taxes” toggle inside Shopify (or create an Etsy shipping upgrade) so U.S. shoppers see the landed cost before they click Pay Now. For a solo maker this five‑minute tweak eliminates most “surprise fee” disputes and the chargebacks that follow.

Offer a “no‑surprise returns” window.

Spell out that you’ll refund the product and any prepaid duty on returns, then pad a small 3 % reserve into your pricing so one refused parcel doesn’t nuke your weekly cash flow. Mention this promise in your confirmation email to set expectations early.

Encourage product bundling.

Add a “Buy 2, ship for the price of 1” banner or use a bundle‑discount app. One box means one brokerage fee, and pushing AOV from $35 to $70 halves the duty percentage on each mug, tee or necklace leaving your studio.

Nudge AOV above $100 with free shipping.

U.S. buyers are conditioned to chase free‑shipping deals; make it the carrot that offsets their new duty bill. A simple $100 threshold keeps your per‑order duty burden under ~10 % for most handmade SKUs while boosting margin.** Offer free shipping from $100+ to offset perceived extra cost.

Automate your customs paperwork.

Shipping tools like EasyShip, ShipStation or your carrier’s own portal can auto‑pull HS codes and generate CBP‑ready CN22/CN23 forms the moment you buy a label. Less manual typing means fewer errors, fewer holds—and no midnight emails from frustrated buyers.

Run a monthly landed‑cost and tariff margin check.

Leverage Craftybase’s Margin and Profits reporting or Shopify’s built‑in import‑duty tool to spot leaks before they snowball. Ensure you always know your margins on each product you sell, and ensure you have a process to tweak prices if your manufacturing cost slides up.

HS Codes & Tariff Lookup - Your Cheat Sheet

What’s an HS code, anyway? Every physical product in global trade is tagged with a six‑digit “Harmonized System” code that tells customs exactly what is in the box—from sterling‑silver charm bracelets (7113.11) to knitted wool sweaters (6110.12).

CBP uses this number to calculate the duty rate, flag restricted items, and decide whether extra paperwork is needed. Get it right and your package sails through; get it wrong and you (or your buyer) could face delays, fines, or a forced return. For small DTC brands, mastering HS codes—or plugging them into your shipping app—is the single easiest way to avoid nasty tariff surprises.

Here are a couple of the most common ones you’ll need to know:

US Tariff FAQ

Do personal gifts under $100 still get through duty‑free?

Short answer: No.
Details: The July 2025 Executive Order scrapped the $800 de minimis for all parcels, including gifts. Form 5106 can classify a shipment as a personal gift, but duty is still assessed case‑by‑case.

Will my U.S. buyer have to pay duty on delivery?

Short answer: Only if you ship DDU.
Details: Under “Delivered Duty Unpaid,” the carrier invoices your customer at the door. Switch to DDP or use a U.S. 3PL to avoid surprise fees.

Can I move inventory from my EU studio to a U.S. 3PL duty‑free?

Short answer: No.
Details: Bulk freight is a formal entry; duty is paid when the pallets land, but the per‑unit cost is usually lower than parcel‑by‑parcel.

How long will customs clearance add to delivery?

Short answer: 12 – 48 hours.
Details: DDP courier parcels are clearing in under 12 h, while postal DDU can wait 24–48 h at major gateways like JFK, ORD, and LAX.

Do digital or download‑only products attract U.S. duty?

Short answer: No.
Details: Tariffs apply only to physical goods that cross the border. Digital files—PDF patterns, SVGs, Lightroom presets, etc.—are not subject to CBP review or import duty.

What happens if my customer refuses to pay duty on delivery?

Short answer: The parcel is returned or destroyed.
Details: Carriers hold unpaid DDU shipments for about 15 days. If duty remains unpaid, the package is either sent back at your cost or disposed of, and you may still be billed for return freight.

Tariff terminology you need to know you need to know

Understanding the jargon is half the battle when you’re trying to keep parcels moving and margins intact. CBP agents, shipping platforms, and even your customers will throw these acronyms around as if everyone got the memo—so let’s make sure you have.

Think of this glossary as your pocket translator: skim it now, bookmark it for later, and you’ll never feel blindsided by a post‑office clerk or a late‑night Reddit thread again.

• De minimis - The U.S. duty‑free threshold for low‑value parcels (formerly $800, scrapped 29 Aug 2025).
• Ad‑valorem duty - A tariff calculated as a percentage of the item’s value (e.g., 15 %).
• HS code - Six‑digit “Harmonized System” classification that tells customs what’s in the box.
• Section 321 - The CBP rule that governs low‑value (<$800) imports; now requires full duty payment.
• DDU (Delivered Duty Unpaid) - Buyer pays duty on arrival; cheapest upfront, riskiest for surprises.
• DDP (Delivered Duty Paid) - Seller prepays duties; smoother experience, higher upfront cost.
• Brokerage fee - Carrier’s paperwork charge for clearing customs on your behalf.
• Landed cost - Total cost of getting a product to the customer: COGS + shipping + duty + fees.
• 3PL (Third‑Party Logistics) - A U.S. warehouse that stores and ships your inventory domestically.
• CBP (Customs & Border Protection) - The U.S. agency that enforces import regulations and collects duties.
• Chapter 99 - Section of the U.S. tariff schedule where temporary or retaliatory duties are listed.
• Tariff band - Grouping of HS codes that share the same duty rate under the new rules.
• Duty drawback - A refund of duties paid on goods that are later exported or returned.

Don’t let duties drain your margin 🛠️

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