A lover of online shopping? We all are! Online shoppers in the U.S. had an advantage thanks to the exemption rule. Shopping could be done on overseas websites and if the total was under $800, then they did not have to any extra import taxes. However, sadly that rule came to an end in 2025.
What Changed and Why
The government made the decision to remove the exemption for many reasons. According to law officials, foreign sellers were at a greater advantage than American businesses because international retailers could send products into the U.S. without collecting taxes on sales whereas U.S. based companies had to deal with state taxes.
Many were also concerned about counterfeit items, safety issues and lost revenue in the form of taxes. This move is meant makes this fairer for U.S. companies.
However, there is an obvious drawback to these changes: consumers are now paying more, even if they could help domestic shops and the government’s revenue base.
How It Affects Your Wallet
Unfortunately, for the online shopping lovers, all items from overseas are now subject to taxes such as import duties, tariffs or state taxes.
Simply put, this means that absolutely affordable pair of shoes you just saw online could end up costing much more once all the additional fees are applied.
The other thing is the delivery period. Prior to this change, packages used to pass customs without being stopped, now there will extra processing steps and this will lead to an increase in wait times for shoppers.
Which Purchases Will Feel the Impact the Most?
There are some items that are affected more than others even though all international orders are impacted:
- Fashion and clothing: Online “fast fashion” stores that flourished under the previous regulation will no longer be able to provide the same low pricing.
- Electronics and gadgets: There may now be significant duty fees associated with small products and accessories that are sent straight from foreign vendors.
- Purchases in bulk and gifts: The expenses will be much higher for families placing bigger orders or small enterprises sourcing reasonably priced products from overseas.
How to Shop Smarter in the New System
Even though the exemption is gone, there are steps consumers can take to avoid being caught off guard:
- Read up on the customs rules before making a purchase: Be mindful of the import duties for what you are purchasing so you know what to expect to pay.
- Make sure you order well in advance to avoid any shipping delays.
- After checking the total amount of your order, compare it to local U.S. stores and see which is more affordable.
- Track your packages to check for updates.
Customers who shop more mindfully might avoid unexpected costs and decide more wisely if it’s still worthwhile to place orders internationally.
Could This Backfire?
Yes, this change is aimed at supporting U.S. businesses however, some people may be unhappy and probably will be discouraged from shopping altogether. It is important to note that customers relied on cheap goods and therefore chose to purchase internationally.
Whether this new strategy actually helps domestic businesses or just restricts consumer choice will become clear in the upcoming year.
Bottom Line
The online shopping landscape has changed since the exemption was uplifted. Now, there are additional costs to what was once seen as affordable. All those who intend on purchasing online moving forward, must be sure to budget for any additional costs, ensure that they are aware that there might be shipping delays and lastly, compare items with local U.S. stores before purchasing.