What Changes to the U.S De Minimis Tariff Rule Mean for Your Etsy Shop and How to Adapt

A disruptive change to business as usual can mean significant impacts to your bottom line.

We previously wrote about how tariffs could affect your Etsy shop, and on August 29th this message only rings louder. On this day, the de minimis tariff rule—allowing certain goods to be shipped into the U.S. without paying import fees—changed significantly. Let’s dive in to see what this de minimis tariff change means for Etsy sellers.

What is the De Minimis Tariff Rule?

The de minimis rule stipulated a threshold—$800 USD—under which goods shipped into the U.S. could enter without incurring a tariff charge. That meant that if a seller from abroad shipped a product valued under this amount to a U.S. buyer, none of the parties had to pay extra fees.

Now, with this new change, a percentage fee assessed based on the value of the product will be collected by the U.S. government for the goods to be allowed into the country.

What This Means for Your Etsy Shop

If you ship orders into the U.S., here is how the de minimis tariff rule change will most likely impact you:

• Tariffs will apply to your products. The percentage of the fee will depend on the category of the good (decided by the Harmonized Tariff Schedule (HTS)) and its origin.
• Customs paperwork will become more important. Products will need to be classified correctly using their proper HTS codes.
• Demand for your product may be impacted by rising costs due to additional tariff fees.

How to Adapt

1. Review Your Pricing

You don’t want to get caught covering tariffs out of your own pocket.

• Research whether your products fall into categories now subject to tariffs, and if so, factor this into your pricing.
• Be transparent in your shop policies—let buyers know if U.S. tariffs are affecting the final cost.

Tip: If you need to raise prices, avoid doing so with one big jump. Test small, incremental increases to see how buyers respond.

2. Review Your Shipping Practices

Getting packages smoothly through U.S. Customs is now more critical than ever.

• Use the correct HTS codes on customs forms. This determines how duties are applied.
• Double-check that the declared value matches the invoice, as discrepancies can cause delays or rejections.

Tip: Many carriers (like DHL and UPS) offer online tools to help you find the right HTS code. If you’re using Etsy shipping labels, the platform auto-fills some info—but always double-check it, as you’re responsible for accuracy.

3. Do your Due Diligence when Selecting Shipping Carriers

Not all carriers handle tariffs the same way:

• Many countries’ postal services often pass customs fees to the buyer upon delivery.
• Commercial carriers (DHL, UPS) may offer Delivered Duty Paid (DDP), meaning you, as the seller, pay tariffs upfront when shipping the product.

Tip: Consider options with DDP to avoid surprise fees for the buyer at their doorstep. We recommend figuring out what the fee is for each of your listings and adding it as an additional line item. Also, if you’re not sure how to apply tariffs to your exact product, a good place to start is your shipping carrier’s support center—they often provide guidance for sellers navigating customs.

4. Communicate with Your Buyers

Buyers don’t like surprises. If U.S. customers may be charged tariffs, let them know upfront.

• Add a note in your shop policies or FAQ: “Orders to the U.S. may be subject to customs duties or taxes.”
• If you’re covering tariffs in your pricing, make it a selling point: “No extra fees upon delivery!”

5. Stay Up-To-Date and Make Adjustments as Needed

This rule change is still evolving, and its effects will differ depending on what you sell.

• Keep an eye on your margins—don’t absorb too much of the cost yourself.
• Compare carriers to find a shipping partner that works for you, not only on cost, but also on how well they can support you with tariff-related questions.
• Stay connected on trade updates using the U.S. Customs and Border Protection website to catch new developments. Also, find additional seller insights on Etsy seller forums.