Quick answer: If you import products into the U.S., or sell to U.S. customers from abroad, small orders no longer slip through duty-free the way they used to. The long-standing "de minimis" exemption for low-value shipments has been suspended, and Congress has also removed it in law. That means you need to know what duties apply to each product, decide whether customers pay them at checkout or on delivery, and price accordingly.
Important: tariff rates and rules have changed several times and sources disagree on current rates and dates. This article explains the practical decisions. It isn't legal or customs advice. Always confirm current rates with U.S. Customs and Border Protection (CBP), your customs broker or your accountant before you set prices.
What changed, in plain English
For years, packages valued under $800 could enter the U.S. with little or no duty under the "de minimis" rule. That's why many small stores could ship low-cost goods directly to customers without extra charges. In 2025 that exemption was suspended, and later coverage says Congress also eliminated it by statute. Shopify's own 2026 guide to international import shipping describes low-value shipments as now being subject to duties.
The rate itself is where sources conflict. Some describe a flat percentage surcharge applied across imports under a trade-law provision, others describe different rates by country and product. Goods that qualify under USMCA rules (from Canada and Mexico) are treated differently. The honest summary: the rate depends on the product's country of origin and its tariff classification, not on where you ship it from.
Who is affected?
- U.S. stores that import inventory from overseas suppliers and manufacturers.
- Dropshippers whose products ship directly from abroad to U.S. customers.
- Non-U.S. stores selling to U.S. customers.
If you only sell goods made and shipped within the U.S., you're less affected directly, but your suppliers' costs may still rise.
Three decisions you have to make
1. Who pays: you at checkout (DDP) or the customer on delivery (DDU)?
If you collect duties at checkout, it's called Delivered Duty Paid (DDP). The customer sees one total and nothing surprising arrives at the door. If you don't, the customer may be asked to pay duties to the carrier on delivery (Delivered Duty Unpaid, DDU). That's cheaper for you at the moment of sale, but surprise bills lead to refused packages, bad reviews and chargebacks. For most small stores, DDP is kinder to your reputation.
2. How do you price it in?
Work out your landed cost per product: product cost + shipping + duty + fees. Then check your margin at your current price. Options when the math stops working:
- Raise prices modestly and say so honestly.
- Raise your free-shipping threshold, or add a small flat duty line item at checkout.
- Bundle products to lift average order value.
- Change suppliers or sourcing countries where it makes sense.
- Drop products whose margin doesn't survive the new costs.
3. What do you tell customers?
Clarity builds trust. Add a short, plain note near shipping information: "Prices include import duties" or "Import duties and taxes may apply at delivery." Put it on product pages, the cart and your shipping policy. If you're raising prices, a one-sentence explanation does more good than silence.
Get the paperwork right
- HTS codes: the tariff classification for each product. Accurate codes matter because they decide the duty. Don't guess.
- Country of origin: where the goods were made, not where they shipped from.
- Customs broker or carrier help: if you import regularly, a licensed broker can save you from costly mistakes.
- Shopify settings: Shopify supports duty and import tax collection in certain setups. Check what's available for your plan and region in your admin, and test a real order end to end.
Practical steps for this week
- List your top 20 products with their cost, country of origin and current margin.
- Ask your supplier or broker for the HTS code and current duty for each.
- Recalculate your margins. Flag the ones that no longer work.
- Decide DDP or DDU, and update your shipping and returns policies to match.
- Add a clear line about duties on product pages and at checkout.
- Re-test a full order with a U.S. address.
Where we can help (and where we can't)
We're not customs brokers and we won't tell you what rate applies to your products. What we can do is the store side: shipping zones and rates, checkout messaging, duty and tax settings in Shopify, and a clear shipping policy. That's what our payments, shipping and tax setup covers. If you'd like us to review your store's checkout and policies in light of these changes, send us a short brief. And if the holiday rush is on your mind, read our holiday shipping deadlines guide and Black Friday pricing guide.
Frequently asked questions
Is the de minimis exemption still in place?
Coverage and Shopify's own guide say the exemption for low-value shipments has been suspended and removed in law, so small imported orders can now be subject to duties. Confirm current rules with CBP.
Should I charge duties at checkout or let customers pay on delivery?
Collecting duties at checkout (DDP) avoids surprise bills, refused packages and bad reviews, so it's usually the friendlier option for small stores. It does mean you must price it in.
How do I find the right tariff rate for my product?
The rate depends on the product's HTS classification and country of origin. Ask your supplier or a licensed customs broker, and check official CBP sources rather than blog posts.
Does this affect me if I only sell products made in the U.S.?
Less directly, but your suppliers' input costs may still rise. Review your margins either way.
Related services
- Shopify Payments, Shipping & Tax Setup โ payment providers, shipping rates, tax settings and test orders
- Monthly Shopify Store Management & Support โ ongoing changes, fixes and check-ups each month
- Shopify Landing Page & Sales Funnel Design โ focused landing pages for ads and launches
