As the holiday shopping season kicks off, these overseas sellers struggle to keep U.S. customers

"But ever since the Trump administration eliminated the exemption as of Aug. 29, the cost to send yarn to U.S. customers has skyrocketed. The bill for a $21 ball of yarn now includes $12 to $15 in brokerage fees that her shipper UPS charges, plus state taxes and a 6.5% tariff, all of which almost doubles her costs."We had orders that have reached the customers and they're in shock about the fact that they have to pay," she said."

"Getting rid of the so-called de minimis exemption was meant to curb drug trafficking and stop low-quality goods from discount sellers like Temu and Shein flooding the U.S. market.But as the all-important annual holiday shopping season kicks off, it is putting a crimp on small businesses and shoppers now facing higher costs.Chad Lundquist in Fort Lauderdale, Florida, ordered fragrance oil from a site called Oil Perfumery in October, but he didn't realize the business was based in Toronto, Canada."

"His total was $35.75, which included an $8 standard shipping fee. But when his package arrived, he was hit with a $10.80 tariff bill from FedEx."It wasn't worth the $10 tariff for a $27 purchase," Lundquist said. Oil Perfumery did not respond to a request for comment.He's not the only skittish shopper. Three months after the exemption ended, sellers abroad are reporting drastic declines in U.S. sales."

Cross-border small-package imports to the United States lost the de minimis exemption on Aug. 29, raising costs for sellers and buyers. A Canadian yarn shop owner now faces $12–$15 brokerage fees from UPS, state taxes and a 6.5% tariff on a $21 yarn ball, nearly doubling costs. The exemption removal aimed to curb drug trafficking and limit low-quality imports from discount marketplaces. Shoppers report surprise tariff bills on modest purchases, and some foreign sellers report sharp declines in U.S. sales. Some sellers absorb duties, others pivot to domestic markets and adjust product offerings and pricing ahead of the holiday season.

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