The End of Duty-Free Shipping: What U.S. Customers & Small Businesses Need to Know!

📌 Summary: As of August 29, 2025, the U.S. is ending its long-standing de minimis exemption, meaning all international orders — regardless of value — will now face tariffs. This change especially impacts small businesses selling low-cost items like stickers and bookmarks. Stickiply is switching to UPS-only U.S. shipping to avoid $80–$200 flat-rate postal penalties and provide transparent, value-based duties. Here’s what this means for customers and sellers.

For tips and more detailed guidance on how to deal with these new tariff changes check out our new blog 'How Small Businesses Can Survive the U.S. Shipping & Tariff Shake-Up' where we discuss 7 ways to save your small business!

⚖️ New Tariff Rules: What You Need to Know

If you're a customer in the United States—or a fellow small business shipping into the U.S. This update directly affects you!

Starting August 29th, 2025, the U.S. government will officially end the de minimis exemption on low-value international shipments from all countries, including the United Kingdom 🇬🇧.

This is part of a sweeping executive order issued by President Trump on the 30th July, 2025, which eliminates the long-standing tax exemption on packages valued under $800 (formerly known as "de minimis"), a rule that previously allowed international small businesses like Stickiply to send products to the U.S. tariff-free.

📉 How This Hurts Small Sellers

The biggest losers in this policy shift? Small Businesses and Independent Artists who rely on platforms like Etsy, eBay, or their own websites to send affordable products, often one sticker sheet/sticker or magnetic bookmark at a time to the U.S.

Previously:

• You could sell a $5 sticker to a U.S. buyer
• Ship it via Royal Mail → USPS
• No duties, no handling fees, no customs headaches

Now:

• That same $5 sticker might trigger an $80–$200 flat import charge
• Making the total cost to your buyer upwards of $85–$205
• Returns, undelivered & cost to small businesses in losses or destroyed goods.

This makes selling low-cost individual items to the U.S. nearly impossible unless you ship in larger bulk, use U.S.-based fulfillment or absorb part of the cost (which most small sellers can’t afford).

Sending Original artwork like paintings, limited edition prints, drawings or sculptures? You might be protected from tariffs. Art is protected under a 1977 federal law that treats artworks as “informational materials” rather than commercial goods, preserving cultural exchange even during trade disputes.

For more information on original artwork and the rules around HS Codes, Country of Origin and more please give this blog a read from Hyper Lux Magazine here.

🔍 What Is De Minimis?

Historically, de minimis allowed U.S. customers to import goods valued under $800 without paying any customs duties or taxes. It made international shopping easy, fast, and affordable - especially for small businesses shipping items like stickers, bookmarks, or accessories. But from the 29th August, that exemption will end.

⚠️ What This Means for Buyers & Sellers

• All international parcels to the U.S. will be taxed, no matter the value, no matter the postal service used.
• If shipped via Government run or National Postal Networks (e.g. Royal Mail, Evri, DPD, USPS End point), a flat-rate import charge of $80–$200 per parcel will apply for the first 6 months.
• After that, these shipments will be taxed based on their declared value (ad valorem) — typically 5 to 15% +.
• If shipped via UPS, FedEx or DHL (Third Party or Private Courier), duties will be calculated as percentage-based tariffs on both the product and shipping, plus a brokerage fee (usually $12–$14).

Read more about the end of de minimus here.

📦 Flat Fee vs Value-Based Tariffs — Aug 29 to Feb 2026

From August 29, 2025 to February 2026, all UK-origin packages shipped to the U.S. will be charged import duties — even if the order is under $800. But how the U.S. applies those charges depends on how your parcel is sent:

⚖️ Two Possible Outcomes:

• ✅ Value-Based Duty (Ad Valorem): Applied when customs paperwork is correct — based on product type and value (e.g. 5.3% + 10% UK tariff).
• ❌ Flat Fee Penalty: A fixed charge of $80–$200 per item if your package lacks full customs documentation or is shipped DAP (Delivered at Place) via national postal services like Royal Mail → USPS.

🎯 How to Qualify for Lower Duties (and Avoid the Flat Fee):

📌 Bottom Line: During this 6-month window, U.S. customs will default to the flat $80–$200 fee when it can’t verify your shipment’s value or classification — even for a £5 sticker. Use DDP and provide the right paperwork to avoid massive penalties.

📦 Real Cost Breakdown – UPS Shipment

📄 UPS Brokerage Fee: ~$12–$14 (paid at delivery)

💰 Final Total Estimated Cost: ~$273.27⚠️ 

By comparison, sending this same order via USPS or Royal Mail after August 29 could trigger a flat fee of $80–$200 — even on orders under $30.

🚚 Why Stickiply will be moving to UPS Only

From August 15th, Stickiply will exclusively offer U.S. shipping via UPS or FedEx to avoid flat-rate penalties and ensure smoother customs clearance.

We’ll continue to:

• Accurately declare all values to Customs & Couriers.
• Provide commercial invoices with HS codes on all packages.
• Work to keep shipping fees as low as possible.
• Look into new ways we can include the cost of tariffs at checkout.
• Prevent customers from incurring huge fines or charges by being open and transparent, displaying information about tariffs and potential charges & reaching out to unsuspecting customers.

Unfortunately, tariffs are outside of our control, but we’ll always keep you informed as things are updated or change (as they do, a lot).

In the UK, we purchase all of our international shipping through Parcel2Go which has an integration with Shopify, Etsy and other Platforms called 'Smart Send'. You can get 20% off your first label with our referral link here.

🏛 A Brief History: What Changed?

The U.S. de minimis exemption was originally established under the Tariff Act of 1930, where the exemption applied to goods valued under $1 — mainly to avoid wasting resources on tiny shipments.

Over time, as international trade evolved, the threshold was raised to $200 in 1993, helping simplify the process for small parcels and cross-border commerce. Then, in 2016, the limit was significantly increased to $800 under the Trade Facilitation and Trade Enforcement Act— a move that helped boost eCommerce and made it easier for U.S. customers to shop from small international sellers (like us at Stickiply).

But now, in 2025, President Trump’s executive order suspends the de minimis exemption globally, meaning any shipment into the U.S. — no matter how small or where it comes from — will now face tariffs or flat import charges.

Even UK-made goods that previously entered duty-free under the $800 threshold will now be taxed — regardless of value, carrier, or origin.

🤔 What Small Businesses Can Do

These new U.S. import rules are a major blow to small creators, indie shops, and Etsy sellers who rely on affordable, lightweight shipments — especially for products like stickers, bookmarks, and small accessories. But there are smart ways to adapt:

✅ Combine Orders to Reduce Overhead

Encourage U.S. customers to bundle items. The larger the order, the more diluted the cost of shipping, tariffs, and brokerage fees per item becomes. Small orders now face disproportionately high costs — even a $5 sticker could trigger a $200 flat fee if shipped via USPS.

✅ Bundle or Group Listings

Instead of selling single items, consider offering multi-pack listings, sticker bundles, or themed sets. This not only raises cart value, but ensures buyers get more value from a shipment that may be taxed regardless.

✅ Use Tracked Couriers With Tariff Transparency

Stickiply will now ship to the U.S. exclusively via UPS, a private courier that calculates duties based on declared value — avoiding the flat-rate fines postal carriers now trigger. We’ll include commercial invoices, HS codes, and proper declarations to ensure our customers understand and can anticipate their import fees.

✅ Communicate Clearly With Customers

We’re updating our shipping policy, product pages, and checkout notes to explain these changes in plain English. Other small businesses should do the same — surprises at delivery lead to refunds and reputation damage. Transparency builds trust.

✅ Think Long-Term: Fulfillment or Partnerships

If your U.S. sales volume is growing, explore U.S.-based fulfilment, partner warehouses, or drop-shipping via U.S. suppliers. Stickiply isn’t there yet — but it’s on our roadmap if demand justifies it.

🫂 Note from Stickiply Team 

Thanks for supporting small businesses through thick and thin. If you have questions, reach out any time at hello@stickiply.com. For more information you can also visit our shipping policy here.

Further Reading Sources:

• White House: Executive Order on De Minimis Suspension (July 2025)
• Reuters: U.S. Ends Parcel Tax Relief, Hits Etsy Sellers
• The Verge: International Packages About to Get More Expensive
• Barron’s: Trump Ends Global Import Tax Exemptions for Small Items

[Updated 23.08.25]