De Minimis to end globally August 29 2025 as per executive order

As per fact sheet issued by the White House:

https://internationaltradetoday.com/source/974484
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Re: De Minimis to end globally August 29 2025 as per executive order


@fergua3 wrote:

so who exactly is paying these tariffs 'up front' and how do they get reimbursed by the person that receives the package, who is the one who is supposed to actually pay the tariffs in the first place?  If the US is expecting other natons to pay Trump's tariffs, they are living in a fantasy world.


@fergua3 

 

3 things that Trump doesn't get are 1) Customs inspects,  2) there is a cost to process function and 3) and the customer pays the tariff. 

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Re: De Minimis to end globally August 29 2025 as per executive order

CPC has NEVER offered a DDP solution for any international destinations, especially the US. The situation never devolved to the point it has now. And since the EO is demanding all low value shipments to be DDP or else rejected, this puts CPC in one hella spot, especially as they're just trying to keep the wheels on the bus.

Royal Mail is able to do this kind of compliance so quickly because they have a system setup to perform DDP/VAT collection for trade with the EU. They were able to add in US CBP compliance based in the existing tools they have. Canada Post will have to build out the DDP collection from the ground up as they've always relied on DDU systems working in other countries. The US CBP is going a route no other country has declared as the ONLY method allowed, simply because the volume of packages (yes even without Chinese goods) coming into the ISCs for CBP processing and then having USPS collect is overwhelming for what they have as available resources and tools.

As far as who pays - the shipper does up front with postal collection being required for DDP. Now how the shipper provides those funds is up to them - adding in the cost in the item price is one option, whether all or some. Or eating it. From the UK perspective, if selling only UK origin goods, 10% isn't so rough. From the Canadian perspective 35% is a different story if CA origin and not CUSMA certified. If like me, with goods from a host of different CoOs, it's a hot mess.

 

Interesting video from a group in the UK supporting small business there that details how Royal Mail is going to handle the changes, there is a mention near the end that eBay and Etsy UK will be integrating the Royal Mail program: https://youtu.be/5sQ2Ccx-y8M?si=Fa8v_5RlWjpJ-KDC

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Re: De Minimis to end globally August 29 2025 as per executive order


@fergua3 wrote:

so who exactly is paying these tariffs 'up front' and how do they get reimbursed by the person that receives the package, who is the one who is supposed to actually pay the tariffs in the first place?  If the US is expecting other natons to pay Trump's tariffs, they are living in a fantasy world.


From what I can tell, Trump wants to end all smaller shipments to the US. I think he wants only large companies importing goods, which he can probably "negotiate" with for additional payouts or domestic spending. Forcing the tariffs to be prepaid would make a significant dent in that and reduce some of the cost for the US to collect them. He can't outright ban small shipments or other countries will retaliate against US small businesses, so he'll probably make it a nightmare to deal with instead so no one will want to.

When the inflation starts kicking in from all of this, it's going to be really interesting to watch. I wonder how long it'll be until he decides that US citizens should also pay a special "membership" fee every year to remain in the USA?  I'm joking ... kind of. It would be more obvious if those new Trump Gold Cards weren't a thing.

 

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Re: De Minimis to end globally August 29 2025 as per executive order

If it is going to be a situation where only DDP shipments are allowed through, I would go as far as to say that eBay should consider blocking Canada to US sales unless they have a completely integrated DDP carrier, or some sort of global shipping program type service up and running. Or, unless they have a way to verify that a seller is signed up with a DDP service.

 

There are DDP services in Canada to ship to the USA, but the problem is that you have thousands of sellers, all of different levels of knowledge about the situation. Having thousands of casual garage sale sellers sending packages to the US that get rejected and turned around would be a massive undertaking, both with the amount of lost fees (eBay loses their cut when an INR is refunded) and the burden on the customer service. 

 

None of us know what will happen or whether that one line from Royal Mail is accurate, but it certainly stands out. 

Message 184 of 195
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Re: De Minimis to end globally August 29 2025 as per executive order

wow is the American public going to be pi....ed about this when they find out they can no longer get stuff they want shipped to them from outside the US because sellers can't/won't pay the tariffs.     The worst part is if sellers buckle and pay the tariffs for the Americans then Trump wins and  will just keep going.   I'd rather go out of busness than help Trump win.

 

 I guess one way around this is to have 2 prices for your goods, one for Americans, which will offset tariffs that need to be paid and one, lower price, for the rest of the world. 

 

Message 185 of 195
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Re: De Minimis to end globally August 29 2025 as per executive order

Indeed. I'm prepared, for once, to just refuse all and every order from the US, if I need to pay the darn taco tariff upfront. Enough of this joke. 

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Re: De Minimis to end globally August 29 2025 as per executive order

upon thinking about it, i guess what is needed is a program, by whatever site people sell on, in this case ebay, to charge the tariffs to the buyer at the time of purchase.  That way the buyer has no nasty surprises later and the seller is not out of pocket to pay tariffs.

 

This is what amazon.com does when non americans buy on their site and it's what Ebay does with their global shipping programs on some of their sites.  I don't know if amazon ca does that but ebay. ca clearly doesn't.

 

This won't save most sales because a lot of buyers will balk at purchasing when they see the tariffs but at least they will know them in advance and the seller does not have to pay, to subsidize Trump's ego.   An addiional benefit is that it will drive home the impact of Trump's trade war to Americans, especially when they can no longer afford something they really wanted to buy.

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Re: De Minimis to end globally August 29 2025 as per executive order

easoss
Community Member

This is a forum for eBay sellers and we go on about DDP and CoO and a pile more 3 letter phrases. But what about the non seller, the grandma sending a birthday or Christmas present to her grandchildren in Pennsylvania. She won't have paperwork done, will have no clue what Country of origin even means. I can't see this working at all, not with 1 month notice. My local PO has no idea about any of this. Are tariffs going to be charged on a made in Canada Christmas card you send to the US. The whole thing is ridiculous and either it won't be followed or parcels will be stuck in the system taking months to deliver.

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Re: De Minimis to end globally August 29 2025 as per executive order


@flipistics wrote:

 

From what I can tell, Trump wants to end all smaller shipments to the US. I think he wants only large companies importing goods, which he can probably "negotiate" with for additional payouts or domestic spending. Forcing the tariffs to be prepaid would make a significant dent in that and reduce some of the cost for the US to collect them. He can't outright ban small shipments or other countries will retaliate against US small businesses, so he'll probably make it a nightmare to deal with instead so no one will want to.

Remember that the reason why this is all being done through executive orders rather than through congress is because Trump is framing this as a national emergency. Small packages contain fentanyl, and somehow, shipping DDP keeps fentanyl from entering the country.

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Re: De Minimis to end globally August 29 2025 as per executive order

I don't think it's a USA VS Canada thing if you're referring to a buyer not understanding the nature of tariffs. Your average buyer whether it is someone from the Canada or the USA is not into ecommerce and whether it's the Canada Post Strike, or the Tariffs, they aren't really up to date on how they work. Most people here can barely grasp how it's going to work, myself included, and we're here everyday checking for information. I don't really look down on people if they have a question about the tariffs or don't understand exactly how shipping works, whether they are in the USA or Canada, I don't notice a difference.

 

As far as who "pays" the tariffs in a DDP type sale. It's the same argument that has been had here for years about who pays for "free shipping". The simplified version is that an item is worth what it is worth. Including shipping, taxes, tariffs, etc. If an item is worth $100 shipped, nobody from the USA is paying $100 with shipping+(whatever tariffs will be), because that will exceed the value of the item. At the same time, it's unlikely that a small time seller is going to eat the costs of the tariffs to make a sale, because on a $100 shipped item, most won't have the margin to do that. The result is, Canada to USA shipping is no longer viable for most items. 

 

So it isn't relevant who physically pays it, or what order it is paid in, because regardless of whether the seller pays it and works the cost into the listing, or the cost isn't worked into the listing and the buyer pays it at the door, it's really still the seller who pays it via losing their margins, this is assuming they price their items at the peak of the market value. It's an input cost. The big takeaway is that it will possibly make selling anything to the USA unprofitable for Canadian retailers or eBay sellers because it will increase what they have to charge (directly or indirectly) to make the same amount of profit, so they simple won't sell to them. Large scale importing is a different discussion entirely. 

 

Think of it like the cost of bubble mailers doubling. If I can sell a DVD for $15 ($10+$5 shipping) and that is the peak of what someone will pay. Then my bubble mailers go up from $1 to $2, and I cannot raise my price from $15 and still make a sale, so I drop the BIN to $9 and raise the shipping to $6, who is paying for that increase in price? On paper, the buyer is paying for the $1 increase in input costs, but I also had to lower my BIN to compensate. So really, I'm paying for it regardless of whether I eat the $1 increase in the BIN or assign it to the shipping cost.

 

That's a massive oversimpiflication, but tariffs will work the same way. It's an additional input cost. Someone has to pay it. Most people try to price things to get the most money possible, so they may not have room to raise their prices. The result will be a lot of sellers not shipping to the USA because it won't be viable with the increase costs to deliver a sale. 

 

A lot of Canadian sellers could relate to the examples above, because those who weren't registered for GST saw their prices increase by 5 to 15 percent overnight when eBay had to begin collecting sales taxes. Even know the buyer was paying that tax, they may have had to lower their prices to compensate for the increase cost to the buyer. So in a scenario where their prices were set perfectly to make the most profit, even if the buyer pays the GST at the checkout screen, it's the seller who loses that money because they had to lower their BIN price to offset the added costs. That's a similar situation. 

Message 190 of 195
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Re: De Minimis to end globally August 29 2025 as per executive order

Best case scenario for packages sent in the postal system would be that it works like Chinese origin packages have worked, where most packages get through, some are returned to sender, no tariffs are charged because Canada Post is not equipped for that. I am not getting my hopes up. I've washed my hands of the entire thing and I will focus on the aspects of my business that market almost entirely to Canadians until there is some sort of clear solution.

 

I am not holding my breath for a seamless DDP system that is integrated with eBay at checkout, but that is likely what it would take for me to return to shipping to the USA after the de minimis is repealed.  

 

The entire thing is unfortunate with the timing of the Canada Post strike. I would take that line with a grain of salt from the Royal Mail about nothing being allowed through without DDP, but I'd imagine that would be the final nail in the coffin for this Canada Post situation, if they were unable to accept US packages overnight. 

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Re: De Minimis to end globally August 29 2025 as per executive order


@mrdutch1001 wrote:

here's a good read:

https://content.govdelivery.com/bulletins/gd/USDHSCBP-3ee147f?wgt_ref=USDHSCBP_WIDGET_2

 

 https://content.govdelivery.com/attachments/USDHSCBP/2025/08/15/file_attachments/3357802/Global%20Gu... 

 


Amongst all of that is this little gem. I guess the concept of "shopping" with favourite sellers goes out the window if you happen to purchase different items from several different countries. 

 

"If products from multiple countries of origin are contained within the package, only the highest IEEPA rate will be used to determine the specific duty rate."

 

Previously the "rule" was tariffs were applied on a line by line basis...as per each HTS code

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Re: De Minimis to end globally August 29 2025 as per executive order

Thanks, Trump… What a moron!
Message 194 of 195
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Re: De Minimis to end globally August 29 2025 as per executive order

Just be watchful what you say if you every plan to travel to the US in the next 7.5 years. They going to profile people like China does, deduct points from the credit scare, it's going to be plenty since he wants to stay for the 3rd term.

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