The end of a trade loophole that allowed low-cost packages to enter the U.S. duty-free has thrown e-commerce into complete chaos.

Imports worth under $800 are no longer protected under a rule known as the de minimis exemption, which allowed people to avoid paying tariffs on these goods. The exemption ended on Aug. 29 for all imports, although it had already been eliminated for Chinese imports back in May. 

U.S. consumers may not be able to order certain goods now that postal services from countries like Australia, Germany and Japan have announced that they’re temporarily suspending shipments to the U.S., with an exception for goods that are under $100 and considered “gifts.”

Meanwhile, consumers who have been able to place orders are getting hit with exorbitant tariffs after their packages have already shipped. 

“I think people are going to realize that if you order something online, you might not even get it. Customs has said if the correct customs duty is not paid, they will seize it,” said Michelle Schulz, founder and managing partner of Schulz Trade Law. 

After the exemption ended for China earlier this year, the number of de minimis shipments coming to the U.S. plummeted from 4 million per day to 1 million, Schulz said. 

Tariffs are a tax that U.S. importers pay to the U.S. government. To make up for that tax, these importers can either absorb the costs themselves or pass them along to you in the form of higher prices.

How are tariff rates calculated?

Postal carriers calculate tariff fees using one of two methods, and then send them to the U.S. Customs and Border Protection after collecting them. 

One of these methods is a percentage-based fee. Every item has a “normal duty rate” based on a code in the United States’ Harmonized Tariff Schedule, said Derrick Kyle, a senior associate at Torres Trade Law. 

The carrier also has to take into account a slew of other tariffs, including the punitive and reciprocal tariff rates that Trump has recently imposed on other countries under the authority of the International Economic Emergency Powers Act. Those range between 10% and 50%. Then there are the 50% tariffs Trump has also imposed on goods like steel, aluminum and copper. Some of these may be combined together and apply to the goods you purchase, while others may not. For example, aluminum and steel are not subject to other tariffs. 

The postal carrier can instead choose to collect a flat rate on the package depending on the country’s IEEPA tariff rate, an option that will be available to them for the next six months. They can charge $80 if the IEEPA tariff rate is less than 16%, $160 if the rate is between 16% and 25%, and $200 if the rate is above 25%. 

But trying to calculate the cost of a package puts “a lot of burden on the consumer,” Kyle said. 

The country of origin might not be listed  when you’re shopping online, since that isn’t a federal requirement, or your product may be exempt from tariffs, Kyle pointed out. For example, many products that comply with the United States-Mexico-Canada Agreement don’t face any duties. 

Can you be hit with surprise fees? 

Some sellers might send packages using an option known as DDP, which means “delivered duty paid.” That means that they will pay for the tariffs and you don’t have to worry about costs on the backend when your package is delivered, said Courtney Griffin, director of consumer product safety at the Consumer Federation of America. 

Backend is the key word here. In order to afford those tariffs, some online sellers are still raising the price of your item upfront. (Some sellers are transparent and list tariffs as their own line item when you’re checking out, Schulz told Marketplace.) 

Sellers can also opt to send packages using another option known as DDU, which means “delivered duty unpaid.” This means that once the package arrives at its intended destination, the buyer is responsible for paying any import duties and taxes, Griffin said. 

“This shifts the risk and the burden onto the buyer. It also means that buyers should be prepared for possible extra fees that are not included in the original price or shipping costs,” Griffin said. 

You might have to pay your bill upon delivery or after you’ve received your package. If you haven’t received your package and choose not to pay these fees, your carrier might withhold your package and send it back to the seller or destroy it. 

There are some sellers that explicitly list whether or not they’re paying for these duties on their websites. But if you’re unsure about their policies, you should contact them and ask what charges you should expect, Griffin explained. Make sure to keep records of those conversations. 

“If there is controversy in the future about fees and customs, consumers want to retain that documentation,” Griffin said. 

What are some red flags you should be aware of? 

If you owe any duties, you should verify that the request is legitimate, Griffin said. 

“You can check tracking numbers and shipment details on the carrier's official website. It is also important to ask for any invoices or documentation that clearly outlines the fees owed,” Griffin said. 

You should be especially cautious if you have to provide any sensitive personal information, like your Social Security number, or if you’re being asked to send these payments using unusual payment methods, like a wire transfer, Griffin said. Common forms of payment from legitimate entities would include cash or credit/debit card, Griffin noted.

Schulz said she’s heard that scammers are already sending customers text messages, claiming that they owe tariff fees, but you should not be getting tariff bills this way. 

What happens if you refuse to pay tariffs? 

Customers who don’t pay tariffs could face repercussions — for example, the carrier could file a commercial claim against the customer for not being able to pay or they could be sent to a collections agency, Kyle said.

“The nonpaying customer would likely be treated like any other customer that does not pay for a service,” Kyle said. 

A customer would only be protected under certain circumstances, like if the additional charge is “unreasonable,” against relevant terms and conditions or if the tariff charge is incorrect, Kyle said.  

If you refuse to pay tariff fees, some sellers say they will grant partial refunds, while others won’t provide one at all. 

Experts advise reading seller reviews and looking at the company’s shipping policies before placing an order. 

But let’s say you’ve ordered an item after doing your due diligence and were under the impression that your fees would be paid by someone else, not you, Griffin said. 

You can dispute the charges with the seller or carrier, let them know that you received unexpected fees, and provide any documents that would corroborate your claims, Griffin explained.