New U.S. Import Duty Rules: What eCommerce Merchants Need to Know (August 29 2025)

If you ship to the U.S., there’s a new set of rules that kicked in on August 29, 2025, and they’re already causing logistical headaches for everyone from Shopify stores to global enterprises.

The short version? Every package going into the United States is now taxed, no matter how small the order (even a $10 phone case)! On top of that, some carriers are refusing shipments unless you prepay the duties. 

For eCommerce sellers, that means higher costs, stricter paperwork, and frustrated customers if you don’t adapt fast and communicate early. There’s a lot of confusion and misinformation on the topic, so let’s break it down in plain English.

In this in-depth article, we'll talk about the recent changes in the de minimis rule, why some postal services have temporarily cancelled their services to the US, and how you need to think about making the switch from DDU to DDP.

What changed with the ‘De Minimis’ exception?

Last month, the de minimis exemption was suspended. For businesses, this poses a huge challenge to their shipping and logistics process.

Until now, U.S. buyers got a free pass on orders under $800. That was the low-value shipment “de minimis” rule. Allowing items to be imported into the U.S. with zero duties to be paid. As of August 29, it’s gone. Now every package gets hit with import duties. 

For postal shipments (think USPS, Royal Mail, Canada Post and Australia Post), there are two ways duties are calculated. Right now, there’s a temporary flat fee system that lasts until the end of February 2026:

• Countries with tariffs of 16% or less = $80 per package
• Countries with tariffs between 16–25% = $160 per package
• Countries with tariffs of over 25% = $200 per package

If a parcel has items from multiple countries, the highest rate applies to the whole package.

For example, if you ship a product from China, every small parcel now costs $200 in duties. Similarly, if you ship a product made in China from Australia, it's still $200 in duties (while an Australian-made product would only be $80). We’ve created this handy reference table below for some of the top importers into the U.S.

Please note that this is subject to change and rates will vary depending on the exact type of product (and HS Code), so for the most accurate quote use Easyship's free tax and duty calculator.
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The other method is “ad valorem,” which means customs charges a percentage of the item’s value. So if a country has a 15% tariff and you send in a $100 product, that’s $15 in duty.

To give you a clearer idea, products from the UK (about 10% tariff) fall into the $80 band. Australia’s similar. Goods from China sit at the top with around 30% tariff, so a $200 flat fee.

One of the biggest impacts of these changes relates to returns. Notably, if a U.S. customer returns something, you don’t get those duties back. They’re lost. Only undeliverable packages are eligible for a refund in some cases.

And yes, import and customs paperwork just became a heavier burden too. You now need to understand and declare:

• Country of Origin (COO) for each item, outlining where it was made
• HS code (Harmonized System code) which classifies the type of retail item
• A clear description of what the product is, what it’s made from, and what it’s used for
• The right Incoterm (like DDP), you can read more on DDP (prepaid) and DDU (pay on arrival) options below
• Manufacturer Identification Code (MID) if available 
• The consignee/importer’s ID (like an EIN or SSN for U.S. entries)
  
  

What does this mean for shipping and postal services?

The new rules have caused immediate disruptions in global courier networks:

• Some postal and standard carriers have suspended U.S. services until they adjust. We’ve created a full list in the table below.
  
• Many carriers now require all shipments to be DDP (Delivery Duty Paid), where previously common DDU (Delivery Duty Unpaid) arrangements where the customer pays on arrival are being rejected.
  
• Express carriers like DHL Express, FedEx, and UPS are still moving both DDP and DDU options, but new surcharges are likely to occur. Make sure you compare prices using a tool like Easyship to ensure you’re getting the cheapest DDP rates to the U.S.

The following postal carriers have temporarily suspended or limited shipments to the U.S:

• Hong Kong – Hongkong Post (Apr 27)
• Singapore – Singapore Post (Aug 25)
• New Zealand – NZ Post (Aug 22)
• Netherlands – PostNL (Aug 23)
• Switzerland – Swiss Post (Aug 26)
• Australia - Australia Post (Aug 26)
• Canada - Canada Post (Aug 25)

Note: This list is current at the time of publishing. It is subject to change as this is an evolving story. Visit Easyship for the latest postage service updates.

Why does all this matter for eCommerce?

For most small and medium-sized eCommerce merchants, no matter whether you use Shopify or WooCommerce, the biggest impact will be on shipping costs. 

The typical U.S. order for many small shops is around $85. Under the new rules, that same order could face an $80 to $200 duty charge—sometimes more than the value of the goods themselves!

As you can imagine, customers aren’t going to love surprise fees either. If you don’t show the costs upfront, you’ll see more abandoned carts due to uncertanity, a higher likelihood of chargebacks, and perhaps understandably, angry emails about unexpected fees.

As mentioned earlier, returns are another problem. Since duties aren’t refunded, “free returns” will eat your margins fast. It’s time to update that shipping policy. Try out our free shipping policy generator. 

Behind the scenes, merchants will also face new compliance demands. You’ll need to provide COO, HS codes, and detailed invoices for every shipment. Without these details, shipments may be delayed or blocked at customs. Causing extensive delays and an increase in “where is my order” customer service enquiries.

In summary, the impact of the removal of de minimis on eCommerce merchants is:

• Higher delivery costs on all U.S. orders
• Margin pressure to stay competitive and protect conversion rates
• Unhappy customers if fees aren’t shown upfront
• Requirement to display and offer Delivery Duty Paid (DDP) options
• Returns that eat into profits
• More paperwork and compliance work

What should eCommerce brands do to prepare?

The most important step merchants can take right now is to prioritize DDP (Delivery Duty Paid) for all U.S. shipments.

This can be done through cross-border tools like Easyship, which offer the ability to display Tax & Duties at Checkout. 

This ensures duties and taxes are communicated upfront and prepaid so customers can see the full cost at checkout and avoid unexpected surprises.

Here’s a practical checklist to help you stay on top of the latest tariff changes:

• Switch all U.S. shipments to Delivery Duty Paid (DDP)
• Use a landed cost calculator like Easyship to estimate total costs before shipping
• Add a simple no-code Import Duty Calculator at checkout with Easyship (works with Shopify, WooCommerce, Shopline, BigCommerce and Magento)
• Audit your current and pending shipments for compliance with these terms
• Update your product catalog with COO and HS codes
• Make sure commercial invoices include full product details, materials, intended use, Incoterm (DDP), manufacturer ID, and consignee/importer ID
• Update your shipping policy to explain that duties are included and non-refundable on returns
• Train your support team so they can answer customer questions clearly
• Keep an eye on carrier announcements about service suspensions or surcharges, or follow Easyship for the latest global updates on U.S. updates
• Consider storing inventory in a U.S. fulfillment warehouse to minimize cross-border duties, contact our team of shipping experts for the best U.S. 3PL rates

What are the key import duty terms you should know?

Here’s a quick look at all the key terms to be familiar with during this time:

• De Minimis: The old $800 duty-free threshold. Gone.
• COO (Country of Origin): Where the item was manufactured.
• HS Code: The universal customs’ international product ID system.
• DDP (Delivery Duty Paid): You pay duties up front, where the customer sees the full price at checkout, allowing for more transparency and higher conversion rates.
• DDU (Delivery Duty Unpaid): Customer pays duties on delivery. Now being rejected, visit Easyship’s free shipping app to check for further details.
• CBP: U.S. Customs and Border Protection, the inspection and enforcement division of the U.S. that is collecting the money.
• Ad Valorem: Duty based on a percentage of the item’s value.
• Incoterm: Standard shipping terms that define who’s responsible for what in international trade.

Understanding these terms will keep you better-equipped to make the right choices and reduce extra shipping costs.

What does this mean for U.S. eCommerce brands

These new rules are a pain, but you can stay ahead of them. Move to DDP, upgrade your checkout with instant import duty calculations, be upfront with customers, tighten up your product data, and look at U.S. warehousing if the numbers make sense.

If you don’t adapt fast, you’ll be stuck with rejected shipments, higher costs, and frustrated buyers.

Try Easyship for free and ensure you’re set up for success as U.S. tariffs and duties continue to change. 

Take Advantage Of New U.S. Import Duty Rules with Easyship Fulfillment

The new U.S. import duty rules make direct-to-consumer cross-border shipping more expensive and complex than ever. By storing inventory in Easyship’s U.S. fulfillment centers, you can:

• Minimize costly duties and delays by shipping domestically instead of cross-border.
• Offer faster, cheaper delivery to U.S. customers with 1–3 day shipping and up to 91% off shipping rates.
• Simplify operations with one platform for inventory, order management, fulfillment, and shipping.

Stay competitive, improve your customer experience and protect your margins—talk to us today about Easyship Fulfillment.

FAQ: New U.S. Import Duty Rules (August 2025)

Do all packages to the U.S. now have duties?

Yes. As of August 29, 2025, the $800 “de minimis” exemption is gone. Every shipment entering the U.S. is subject to duties, no matter the order value.

How much duty will my customers pay?

For postal shipments until February 2026, there’s a temporary flat fee:

• $80 per package (tariffs ≤16%)
• $160 per package (16–25%)
• $200 per package (tariffs >25%)

Express couriers typically charge an ad valorem duty based on item value. Use Easyship to calculate exactly how much you’ll pay depending on the item, country and value.

Can customers still pay duties on delivery (DDU)?

Not reliably. Many postal and economy carriers now refuse DDU shipments. Merchants should prioritize DDP (Delivery Duty Paid), where duties are prepaid and displayed at checkout.

Which postal carriers suspended U.S. shipments?

Several have temporarily suspended or limited U.S. service, including Hongkong Post, SingPost, NZ Post, PostNL, Swiss Post, Australia Post, and Canada Post. Always check carrier announcements for updates or use a multi-carrier tool like Easyship to compare rates and availability.

Are express couriers like DHL Express, UPS, and FedEx still shipping?

Yes. Major express carriers continue to operate into the U.S. under both DDP and DDU terms, but merchants should expect new surcharges. Using a rate-comparison tool like Easyship helps identify the cheapest DDP options for every shipment.

Do merchants get duties refunded on returns?

No. Duties are non-refundable for returned items. Refunds are only possible for undeliverable shipments.

What paperwork is required for U.S. imports now?

Every shipment must include:

• Country of Origin (COO)
• HS Code
• Detailed product description and materials
• Incoterm (e.g., DDP)
• Manufacturer ID (if available)
• Consignee/importer ID (like EIN/SSN)

How can I reduce costs under the new rules?

Switch to DDP, use Easyship’s cost calculator, add tax and duties at checkout, and consider U.S. warehousing to effectively optimize your cross-border duty and shipping requirements.

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IMPORTANT: The information provided in this blog is for educational purposes only and does not constitute legal, tax, or financial advice. Laws differ by jurisdiction and change regularly. You should not rely on this content as your sole source of information. If you have specific concerns, please consult a qualified professional.