The Removal of the US Diminis Rule Devastates International Trade for Small Businesses

As of August 29, 2025, the US Adminstration has officially eliminated the long-standing Duty-free De Minimis Rule, which previously allowed all parcels valued at under $800 to enter the US tariff-free. 

This rule allowed most small e-commerce businesses -- like ours and other international Etsy businesses -- to quickly, easily and affordably ship to the USA. Unfortunately, that is no longer the case.

This decision is the most extreme and devasting thing to happen to international small businesses like ours. Why? Because the US accounts for over 75% of our sales. Losing most or all of those sales means no longer being able to support our family with this business. And believe it or not, we're one of the lucky ones. We've seen Etsy sellers claim that over 90% of their sales previously went to the US, and that this decision means closing their doors for good.

But eliminating the De Minimis Rule doesn't just hurt international small businesses - it also harms US small businesses as well. Most small businesses rely on sourcing at least some of their products or materials from other countries. Unfortunately, with extremely high reciprocal tariffs on pivotal manufacturing countries like China (currently 30%) and India (currently 50%), this means that US companies will need to rethink what they sell, hope to find manufacturers in other countires (which isn't always an option), or raise their prices considerably. And we all know what that means... more inflation.

International Etsy Sellers Must Charge US Buyers The Tariffs

In order for us to continue shipping to the US, exporters (that's me, the international seller) are required to collect and remit tariffs on behalf of importers (that's you, the US buyer). 

At the moment of writing this article, Etsy does not have a feature that allows Etsy sellers to show US buyers exactly how much they will be paying in tariffs. Instead, we have two options: either build the tariff costs into our product prices, or build them into our shipping fees.

Here's the problem with both...

BUILDING TARIFFS INTO PRODUCT PRICES

While this would be a much simpler option, with clear costs laid out for each buyer and much less work on our end, this method would ultimately mean US buyers pay more in tariffs than you should. This is because tariffs are charged on the product price. So instead, I will be...

BUILDING TARIFFS INTO SHIPPING PRICES

This will keep your tariffs lower, but it's complicated...to say the least. 

Our shipping fees will now account for the following:

  • My costs to ship (US carrier fees - $5.99 USD)
  • The US baseline duty (determined by the type of product it is)
  • The US reciprocal tariff (based on the country that our materials came from)
  • The Merchandise Processing Fee (currently set at $1.35 USD per shipment.)
  • The Shipment Items/Broker Fee (currently set at $0.15 USD per order item.)

Here's where things get sticky:

Most of our listing include product options that range substantially in price (for example, a single chain listing may offer a chain for $12 on the low end, and a chain for $50 on the high end).

Unfortunately, we aren't able to make individual shipping profiles for each differently-priced item within a single listing. So we have to set the shipping fee to account for the tariff on the the highest priced item in that listing (ex. the $50 chain). But don't worry, we have a solution...

We Will Refund You For Tariff Overages

You will only be charged the amount shown as your shipping fee if you are purchasing the most expensive item in that listing (ex. the $50 chain). When we ship your parcel, we will calculate the total cost of your tariff based on the actual price of the item(s) you purchased, and we will refund you the difference.

*Note, refunds sometimes take a few business days to process before they show up on your bank statement. If for some reason Etsy has issued your refund as an Etsy credit instead of a reversal to your credit card or original method of payment, you will need to contact Etsy Support directly for assistance. Sellers do not have the ability to select how a refund is issue, as we only have one button that says Issue Refund.

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With the past 13 years devoted to growing Charm Philosophy, I feel so sad that we are all in this position. But I am so grateful to all of our US customers who are continuing to support us through these challenging times. It truly means the world.

Nicole