Tariff D-Day: Handmade Sellers Brace for U.S. Import Shake-Up While Buyers Foot the Bill

The countdown is over. On August 29, 2025, the United States officially ended its long-standing de minimis exemption — the rule that allowed overseas sellers to ship low-value items (under $800) to American customers without incurring import duties.

As a UK seller currently residing in the Netherlands, this change feels like the latest in a series of blows to small creative businesses trying to keep international customers happy. International shipping from the Netherlands is already really expensive compared to the UK — and that’s always puzzled me. The Netherlands is a major transport hub, with planes constantly coming and going; surely that should make airmail more efficient, quicker, and less costly? Apparently not.

Now, on top of high base shipping prices, there’s the new tariff structure for U.S. orders.

Tariff D-Day: Handmade Sellers Brace for U.S. Import Shake-Up While Buyers Foot the Bill

What's Going To Change on Tariff D-Day

For years, the de minimis threshold has allowed small parcels to enter the U.S. without customs duties, making it viable for small makers to serve American customers.

As of Tariff D-Day:

• All shipments, regardless of value, are now subject to import duties.

• Many postal operators will apply a temporary flat customs fee of $80–$200 per package for roughly six months.

• Some postal services, like Royal Mail, have indicated they will instead use ad valorem duties (a percentage of the item’s value) — often around 10–16% for common handmade goods.

• After the transition period, duties will be calculated entirely on an ad valorem basis (generally 10%–50%, depending on product category).

This impacts sellers from every country — including those of us in the UK and the Netherlands — and the effects will be felt immediately.

Not Just About Temu and Shein

Much of the political conversation around this change has centred on stopping the flood of low-cost imports from big Chinese brands like Temu, Shein and AliExpress. The U.S. wants to curb the influx of ultra-cheap, mass-produced goods that bypass traditional trade safeguards. While that narrative makes sense at a macro level, the reality is that these rules don’t just apply to fast-fashion giants. They also hit independent artisans, small studios, and makers of unique handmade products.

That means the jeweller casting silver rings in a home workshop, the ceramicist hand-throwing mugs, or the weaver producing textiles in small batches now face the same duty system as billion-dollar corporations shipping containers of polyester dresses. The playing field isn’t just levelled — it’s tilted against the very people who rely on affordable, low-volume international shipping to reach appreciative customers overseas.

Handmade Sellers Hit Hard

If you run a small creative business — whether it’s pottery, jewellery, textiles, or art prints — the new rules will bite.

That £30 handmade mug I might sell today could cost my U.S. buyer £90 or more after shipping and customs fees are applied. And that’s before we even factor in the already high Dutch postal costs I face living here.

Low-priced items, once easily accessible to American customers, will become far less appealing. I’m expecting more abandoned baskets, more ‘I’ll think about it’ messages, and more disappointed would-be buyers.

Customers Left in the Dark

One of the most frustrating aspects is the lack of clear, consistent communication for U.S. customers.

• Platforms like Etsy and Shopify haven’t implemented a universal tariff collection system at checkout.

• Postal services are handling the rules differently, so two buyers ordering the same item from different sellers might be charged completely different fees.

• Most customers only discover the charges when their package arrives, and they’re told they can’t receive it without paying the extra.

It’s a recipe for confusion, frustration, and — worst of all — mistrust.

The Transparency Problem

Big marketplaces have managed to collect sales tax automatically, but tariffs are trickier. Without a unified process:

• Sellers face the risk of receiving bad reviews from customers who are blindsided by unexpected extra costs.

• Buyers might feel misled, even when we’ve made every effort to warn them.

• It could deter U.S. customers from shopping internationally altogether.

Royal Mail vs Flat Fee: What’s Really Happening?

While many postal services will default to a flat customs fee during the six-month transition, Royal Mail has confirmed it will not automatically apply this approach. Instead:

• Royal Mail will use ad valorem duties, charging a percentage of the shipment’s value, typically around 10–16% for common handmade goods.

• They are launching a Postal Delivered Duties Paid (PDDP) service, which allows sellers to pay these fees upfront, so buyers aren’t hit with additional costs later.

• Sellers using other postal carriers (or those without complete customs data) may still incur a flat fee of $80–$200, depending on how USPS processes the package.

For UK-based sellers, this could make Royal Mail a far more cost-effective option compared to the flat fee applied by other national postal operators.

And What About the U.S. Postal Service and Customs?

It’s easy to focus on what we, as overseas sellers, need to change — but the reality is that U.S. postal services and customs themselves will also have to adapt.

Processing millions of extra low-value parcels through a duty-collection system is no small feat.

USPS and U.S. Customs & Border Protection will need to:

• Update their software systems to handle duty calculation on every parcel, not just higher-value ones.

• Train staff to manage new tariff codes and processes.

• Coordinate with international postal services to ensure the correct data is transmitted ahead of arrival.

And let’s be honest — that’s not something that gets done overnight. We can expect delays, inconsistencies, and instances where parcels are processed under different rules, depending on the day, port of entry, or individual handling them. For sellers, that means a period of unpredictability — and for customers, it could mean slower delivery times and more confusion at the door.

What Businesses Can Do Now

Until there’s a clear, standardised approach, we have to do what we can to minimise the fallout:

1. Communicate clearly: Place a prominent note on listings for U.S. customers explaining any applicable fees.

2. Explore Delivered Duty Paid (DDP): Utilise shipping options where duties are paid upfront, so customers don’t receive a surprise bill.

3. Bundle products: Higher-value orders may make the percentage-based duty or even the temporary flat fee less painful.

4. Consider U.S.-based fulfilment: If the volume makes sense, keeping stock in the States could bypass the issue entirely.

Final Word

Tariff D-Day has arrived, and it’s reshaping international (handmade) trade overnight. The burden is falling on both sides — on makers like me, already battling high shipping costs in the Netherlands, and on loyal U.S. customers who suddenly face hefty extra charges.

The lack of process, the inconsistent messaging, and the unpredictability make this more than just a logistical challenge — it’s a real threat to the relationships we’ve built with our customers over the years of trading.

For now, the best we can do is stay informed, adapt quickly, and maintain open and honest conversations with our buyers. The landscape has changed, but small businesses have a way of surviving storms — we’ll just have to get creative in how we weather this one.