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Business and Economy - August 29, 2025

US Tariffs Wreak Havoc on International Online Shopping: Here’s What You Need to Know About Your Orders This Week

The Trump administration’s latest executive order has significantly altered the landscape of online shopping, affecting millions of customers across the globe. As of Friday, the de minimis exemption, which previously allowed duty-free entry for items worth less than $800, has expired.

This move is likely to have far-reaching consequences, especially in a global economy where trends drive consumer behavior. From matcha from Japan and skincare products from South Korea, to China-made Labubus and Lafufus, or European tinned fish, online shopping has become an integral part of our lives.

Younger consumers, who often express feelings of financial insecurity, frequently turn to small purchases such as pastries, specialty coffees, or cute plush toys, with a Bank of America study finding that 57% of Gen Z buy themselves a treat at least once a week. However, these indulgences could become more expensive due to the new tariffs.

Under the new order, most internationally shipped goods will now be subject to the tariffs of their country of origin. The costs associated with these duties are estimated to be around $80 per item for countries with a tariff rate less than 16%, $160 per item for countries with tariff rates between 16% and 25%, and $200 per item for countries with rates above 25%.

In anticipation of these changes, numerous postal services and companies around the world have already halted parcel shipments to the US. International postal powerhouse DHL has also paused many of its shipments, joining other European carriers in suspending service.

This change is likely to impact online orders this week, with customers potentially facing delays or increased costs. Fast fashion companies such as Shein and Temu have been preparing for this by setting up US warehouses, but niche products shipped directly from their countries of origin are more vulnerable to these tariffs.

For instance, Olive Young, the Sephora of K-beauty websites, announced a 15% customs duty on all orders going to the US starting August 27. Similarly, distributors of Japanese matcha have suspended US delivery until further notice.

PostEurop, a trade group representing European postal services, has stated that they received shipping guidance from US Customs and Border Protection on August 15, leaving only two weeks to overhaul a complex shipping system with many unanswered questions regarding duties.

In light of these changes, it’s advisable to use courier companies such as UPS, FedEx, or DHL Express that have systems in place to get packages cleared by customs. If a service has paused deliveries and the arrival date is well after Friday, the best advice would be to try and return the package as soon as possible to avoid costs or disposal of the items.

Online shopping may never return to its previous cheap and efficient state, even once international carriers resume service to the US. Brands have already started implementing customs duties for US shoppers, and shipping times from international destinations are likely to increase due to extra customs barriers.

It’s still unclear how long it will take for each postal service to resume service, with the timeline depending on each country. Consumers can expect some disruptions in their online shopping experience in the coming weeks.