Why Tariffs Hit Small Businesses Harder, According To Experts
International shipping is about to get a lot more expensive for both businesses and shoppers in the United States.
Starting Friday, the long-standing “de minimis” rule—which allowed packages worth up to $800 to enter the US duty-free—is officially ending. This exemption has been a lifeline for small businesses and online marketplaces, but now companies and consumers will face new tariffs on nearly all imported packages.
Why This Matters
The change is part of Donald Trump’s trade policies, which already removed the exemption for shipments from China and Hong Kong back in May. That move especially hurt budget-friendly platforms like Shein and Temu, which relied on low-cost shipping.
Now, international postal services across Europe and Asia are halting US shipments because of the uncertainty. Singapore’s SingPost, India’s postal service, DHL, and Austria’s Post are among those stopping or limiting deliveries to America. Britain’s Royal Mail will also pause shipments as it adjusts to the new system.
The Austrian Post explained:
“There is currently insufficient information on the customs clearance procedures … This tightening of regulations poses major challenges for postal companies worldwide.”
What It Means for Shoppers and Businesses
US Customs and Border Protection reported that more than 1.36 billion de minimis shipments entered the country last year—about 4 million packages every day. With the rule gone, costs will now rise sharply:
- $80 per item if tariffs are below 16%
- $160 per item if tariffs are 16%–25%
- $200 per item if tariffs are above 25%
Countries like Brazil are facing the steepest rates, with tariffs up to 50%.
For small businesses, the impact is immediate:
- Abbott Atelier Jewelry (Canada) told customers it must pause US shipping.
- Wool Warehouse (UK) said extra fees could push costs 50% higher and stopped shipping on August 21.
- Olive Young (South Korea) announced a flat 15% duty on all orders starting August 27.
Online marketplaces like Etsy are urging sellers to include tariffs in product pricing to avoid surprises at checkout. Still, some sellers—like UK-based jewelry maker Shed Maid, who gets 50% of orders from US customers—are shutting down US sales altogether.
The Bigger Picture
This shift could reshape how global e-commerce works. While large platforms like Amazon may adapt, small international businesses risk losing their biggest customer base: American shoppers. And for US consumers, it likely means higher prices, fewer choices, and slower deliveries.
#SmallBusiness #USTariffs #Ecommerce #GlobalTrade #ShopSmart