What are tariffs?

A tariff is duties paid on products that go from one country to another. The most common type of tariff is a fixed percentage tax on the value of the imports (goods).

Who is responsible for paying any cost associated with the increased tariffs?

The importer—the party purchasing goods from another country—is responsible for all costs associated with importing, including tariffs.

What are the changes to US tariffs?

Baseline Tariff and Reciprocal Tariffs

On April 2, 2025, President Trump announced a 10% baseline tariff on all US imports which took effect on April 5, 2025 at 12:01 AM ET for most countries. New country-specific reciprocal tariffs were announced on July 31, 2025 and are scheduled to replace the 10% baseline rate for affected countries starting August 7, 2025. Details about these rates can be found in Annex 1 of this Executive Order. For countries not listed, a default 10% reciprocal rate applies. Please keep in mind that reciprocal rates are applied in addition to rates established by other policies, and so may not be indicative of the total tariff rate percentage.

Additionally, another July 31, 2025 Executive Order confirmed that the tariff rate for general goods from Canada would increase to 35%, except for goods that qualify under USMCA rules of origin, which will remain duty-free (0%), effective August 1, 2025. Learn more about the US - Mexico - Canada Agreement ( USMCA) here.

De Minimis Exception

On July 30, 2025, the US announced that it will remove the de minimis exemption for all goods from all other countries, effective August 29, 2025. This follows an earlier policy change on May 2, 2025, which had already ended the exemption for goods originating from China and Hong Kong.

Until August 29, shipments valued at $800 or less can enter the US duty-free via the international postal system (except products originating from China/Hong Kong as of May 2025). Under the new policy, all international shipments — regardless of value or origin — will be subject to import duties and formal customs processing starting on August 29, 2025.

This is an active and fast-moving situation, and we recommend that you visit The White House Executive Orders for up to date information about tariff changes.

What is the de minimis exemption?

The de minimis tax exemption is a law that Congress passed that allows shipments bound for American businesses and consumers valued under $800 (per person, per day) to enter the US free of duty and taxes. Effective August 29, 2025 the US government will eliminate the de minimis exemption for all international commercial shipments, This means that no package valued under $800 will be allowed into the US tariff-free, regardless of the country of origin starting August 29, 2025.

What countries does the de minimis import exemption impact?

As of May 2, 2025, the de minimis exemption no longer applies to goods that are made in or shipped from China.

On July 30, 2025, the US government announced it will remove the exemption entirely for all international commercial shipments, effective August 29, 2025.

Starting on August 29, 2025, no package—regardless of its value or country of origin—will be allowed into the US tariff-free. All commercial shipments will go through customs and be subject to import duties.

How does the de minimis threshold impact my brand importing into the US?

As of May 2, 2025, the de minimis exception no longer applied to goods originating from (i.e., made in or shipped from) China or Hong Kong. Country of origin is determined by what your supplier reports on Customs paperwork for each product.

Effective August 29, 2025 the US government announced that it will eliminate the de minimis exemption for all international commercial shipments.

How will duties be applied to international orders shipped to the US following the removal of the de minimis exemption on August 29?

Starting August 29, goods shipped internationally to the US through the postal system will be charged one of the following:

• Ad valorem duty: A percentage-based tariff, calculated based on the value of the goods and the tariff rate of the country of origin.
• Specific duty: A temporary flat-rate fee of $80 to $200 per item, depending on the country of origin’s tariff rate. This option will be available only for the first six months after the policy goes into effect.

Shipping carriers will determine which of the duty calculations they will use for all shipments. After the six-month transition period, all international shipments will default to the ad valorem duty structure.

How is the specific duty flat-rate fee amount determined and when does it apply?

The flat-rate duty is a temporary fee of $80 to $200 per item, based on the country of origin’s tariff rate. This special duty will apply only during the first six months after the policy takes effect on August 29, 2025, and it may only apply to goods shipped through international postal services.

The rate is based on the IEEPA tariff rate (a special duty rate under U.S. emergency trade rules) for the country where the goods were shipped from (details about these rates can be found in Annex 1 of this Executive Order):

• $80 per item – if the origin country's effective rate is less than 16%
• $160 per item – if the rate is between 16% and 25%
• $200 per item – if the rate is higher than 25%

If your shipment qualifies, your carrier will decide whether to apply the flat-rate duty or continue using the ad valorem method. This flexibility allows some carriers to potentially reduce complexity for smaller, low-value items—but only during the initial six-month transition period.

Will any orders still qualify for the de minimis exemption?

Before August 29, 2025, international shipments valued under $800 per person, per day may qualify for the de minimis exemption, allowing them to enter the US without duties or taxes. The value of goods refers to the amount your retailer paid for the products before taxes, shipping, or any promotional discounts or credits.

However, starting August 29, 2025, the US will eliminate the de minimis exemption for all international commercial shipments. This means that all shipments—regardless of value or origin—will be subject to import duties and formal customs processing.
After August 29, duties will be calculated in one of two ways:

• Ad valorem duty: A percentage-based fee based on the value of the goods and the country-specific tariff rate set for your country.
• Specific duty: A temporary flat-rate fee of $80 to $200 per item, depending on the country of origin. This option will only be available during a six-month transition period.

Shipping carriers will choose which duty calculation method to apply. After the transition period of 6 months, all shipments will default to the ad valorem duty structure.

How will tariff changes affect brands in countries with increasing tariffs?

If your brand ships from a region impacted by the recent tariff changes, you may see shifts in purchasing behavior from US retailers as they adjust to increased costs.

How will these changes impact US brands?

If your business is based in and ships from the US, here’s how these changes may affect you:
If you buy components or manufacture your products from outside the US, it’s likely your supply costs will increase.

• Your retailers will not pay any of the new tariffs at this time – whether they are based in the US or elsewhere.
• You may see increased demand from local retailers seeking to minimize their own import tariff costs.

How will tariff changes affect brands in countries with increasing tariffs?

If your brand ships from a region impacted by the recent tariff changes, you may see shifts in purchasing behavior from US retailers as they adjust to increased costs. This could result in fewer orders from the US.

What should I do if my costs are increasing?

If you buy components or manufacture your products from outside the US, it’s likely your supply costs will increase. While every business is unique, here are some approaches we have heard from our brands:

• Some brands are negotiating directly with their suppliers to reduce costs and split tariffs, while others are finding ways to source their products locally.
• Some are evaluating their current supply and, if they have enough stock on-hand for the next 3-6 months, are waiting to make decisions about their supply chain given how quickly the situation is changing.
• Some are considering whether to raise their prices if they are running low on stock. It’s important to not rush to change your prices without understanding the implications for your business.

Why do I need to ensure my products have the correct country of origin or Made in label?

It is important to make sure your country of origin or Made in information is aligned with your customs documents to ensure a smooth experience for your US customers and helps Faire calculate duties accurately on your behalf.

For example, if your customs forms list China as the country of origin, it's important that the "Made in" information on Faire also reflects China. This ensures your US customers understand that duties on Chinese imports may apply, preventing confusion or unexpected issues with their order.

How do I determine my “Made in” location?

The country of origin or Made in should reflect the country of manufacture, production, or growth of the product – in accordance to country of origin (COO) based on the definition used by the US Customs & Border Protection. The country of origin of a product may be changed in a secondary country if the second country constitutes substantial transformation or impacted by rules outlined here.

If you personalize or finish imported items—for example, printing, embroidering, or hand-decorating apparel, mugs, or other blanks after they arrive in the US—these types of modifications typically do not change the product’s country of origin under US Customs guidelines. In those cases, the Made in label should still reflect the country where the original item was produced.