We're watching this situation closely as it develops. Our team is reviewing all official government updates and figuring out what these changes mean for the Faire community. We'll share updates as we learn more. The unprecedented nature of some of these changes means that we may not have certainty on some issues until U.S. Customs begins executing new policies.
This content is provided for informational purposes only and does not constitute legal or customs compliance advice. Brands and retailers remain responsible for ensuring shipments comply with applicable laws and regulations. Consult with your legal counsel and your customs broker to understand your obligations.
What are tariffs?
A tariff is duties paid on products that go from one country to another. The most common type of tariff is a fixed percentage tax on the value of the imports (goods).
Who is responsible for paying any cost associated with the increased tariffs?
The importer—the party purchasing goods from another country—is responsible for all costs associated with importing, including tariffs. Typically the retailer is the purchasing party and therefore is the importer.
What are the changes to US tariffs?
Baseline Tariff and Reciprocal Tariffs
On April 2, 2025, President Trump announced a 10% baseline tariff on all US imports which took effect on April 5, 2025 at 12:01 AM ET for most countries. New country-specific reciprocal tariffs were announced on July 31, 2025 and are replaced the 10% baseline rate for affected countries on August 7, 2025. Details about these rates can be found in Annex 1 of this Executive Order. For countries not listed, a default 10% reciprocal rate applies. Please keep in mind that reciprocal rates are applied in addition to rates established by other policies, and so may not be indicative of the total tariff rate percentage.
Additionally, another July 31, 2025 Executive Order confirmed that the tariff rate for general goods from Canada would increase to 35%, except for goods that qualify under USMCA rules of origin, which will remain duty-free (0%), effective August 1, 2025. Learn more about the US - Mexico - Canada Agreement ( USMCA) here.
De Minimis Exception
On July 30, 2025, the US announced that it will remove the de minimis exemption for all goods from all other countries, effective August 29, 2025. This follows an earlier policy change on May 2, 2025, which had already ended the exemption for goods originating from China and Hong Kong.
Prior to August 29, shipments valued at $800 or less could enter the US duty-free via the international postal system (except products originating from China/Hong Kong as of May 2025). On August 29, 2025, this exemption was eliminated for all international commercial shipments. Under the new policy, all international shipments — regardless of value or origin — will be subject to import duties and formal customs processing.
This is an active and fast-moving situation, and we recommend that you visit The White House Executive Orders for up to date information about tariff changes.
What is the de minimis exemption?
The de minimis tax exemption is a law that Congress passed that allowed shipments bound for American businesses and consumers valued under $800 (per person, per day) to enter the US free of duty and taxes. As of May 2, 2025, this exemption no longer applied to imports made in and shipped from China. As of August 29, 2025, this exemption was eliminated for all international commercial shipments. This means that no package valued under $800 will be allowed into the U.S. tariff-free, regardless of the country of origin (unless a different exemption applies, such as the USMCA).
What countries does the de minimis import exemption impact?
Effective August 29, 2025, this exemption was eliminated for all international commercial shipments. This means that no commercial package valued under $800 will be allowed into the U.S. tariff-free, regardless of the country of origin (unless a different exemption applies, such as the USMCA).
What is the U.S. de minimis policy change announced on July 30, and how does it impact international shipments to the US?
On July 30, 2025, the U.S. announced that it will remove the de minimis exemption for all goods from all other countries, effective August 29, 2025.
This follows an earlier policy change on May 2, 2025, which had already ended the exemption for goods originating from China and Hong Kong.
Under the new policy, all international shipments — regardless of value or origin — will be subject to import duties and formal customs processing.
As o f August 29, goods shipped internationally through the postal system are charged one of the following:
- Ad valorem duty: A percentage-based tariff, calculated based on the value of the goods and the tariff rate of the country of origin.
- Specific duty: A temporary flat-rate fee of $80 to $200 per item (i.e., package), depending on the country of origin’s tariff rate. This option will be available only for the first six months after the policy goes into effect.
Shipping carriers will determine which of the duty calculations they will use for all shipments. After the six-month transition period, all international shipments will default to the ad valorem duty structure.
How will duties be applied to international orders shipped to the US following the removal of the de minimis exemption on August 29?
As of August 29, goods shipped internationally through the postal system will be charged one of the following:
- Ad valorem duty: A percentage-based tariff, calculated based on the value of the goods and the tariff rate of the country of origin; or
- Specific duty: A temporary flat-rate fee of $80 to $200 per item (i.e., package), depending on the country of origin’s tariff rate. This option will be available only for the first six months after the policy goes into effect.
Only packages sent through the international postal network (e.g., U.S.P.S., Royal Mail, etc.) have the option of paying the specific duty instead of the ad valorem duty.
After the six-month transition period, all international shipments will default to the ad valorem duty structure.
When might a specific duty flat-rate fee apply, and how is the amount determined?
The flat-rate duty is a temporary fee of $80 to $200, based on the country of origin’s tariff rate. This special duty may apply to goods shipped through international postal services (e.g., the United States Postal Service, Royal Mail, etc.) and could apply only during the first six months after the policy takes effect on August 29, 2025.
If a specific flat-rate duty applies, it will replace the percentage-based tariff (the “ad varolem duty”). We believe the specific flat-rate duty is likely to apply to an entire package or parcel as a whole (e.g., one $80-$200 fee per package), with the ultimate determination made by U.S. Customs.
The rate is based on the IEEPA tariff rate (a special duty rate under U.S. emergency trade rules) for the country where the goods were shipped from (details about these rates can be found in Annex 1 of this Executive Order):
- $80 per package or parcel – if the origin country's effective rate is less than 16%
- $160 per package or parcel – if the rate is between 16% and 25%
- $200 per package or parcel – if the rate is higher than 25%
If your shipment qualifies, the carrier will decide whether to apply the flat-rate duty or continue using the ad valorem method. This flexibility allows some carriers to potentially reduce complexity for smaller, low-value items—but only during the initial six-month transition period.
To learn more about how this may apply to your shipments, visit How will the specific duty flat-rate fee amount be applied, by item or package?
Will any orders still qualify for the de minimis exemption?
Yes — but only in limited cases.
- As of May 2, 2025, the de minimis exemption no longer applies to goods made in or shipped from China or Hong Kong.
- Orders crossing the U.S. border before August 29, 2025, can still qualify — but only if the total value is under $800 and meets all U.S. Customs requirements.
- Orders crossing the U.S. border after August 29, 2025, will no longer qualify for the de minimis exemption based on the U.S. de minimis policy change announced on July 30, 2025.
Important to know:
The $800 limit applies to the total value of goods shipped from the same brand to the same retailer and processed by U.S. Customs on the same day — even if the order is split into multiple packages. If the total exceeds $800, the exemption may not apply.
As of August 29, 2025, the de minimis exemption was eliminated entirely for all international shipments. That means every package entering the U.S. will be subject to import duties, no matter where it comes from or how much it’s worth (unless a different exemption applies, such as the USMCA).
What makes a product USMCA compliant?
To qualify for USMCA duty-free treatment, products must be made in Canada, the United States, or Mexico, with sufficient materials and manufacturing from these countries to meet the USMCA rules of origin.
As the exporter, you’re responsible for accurately declaring the product’s origin. If documentation is missing or incorrect, duties may be applied and billed to your retailers.
Please note that inaccurately identifying your products as USMCA-compliant, or repeatedly failing to provide the required documentation for such products, may be considered a violation of Faire’s Terms of Service.
To learn more about marking your products as USMCA compliant, visit How do I mark my eligible products as duty-free under the US-Mexico-Canada Agreement (USMCA)?
How will tariff changes affect brands in countries with increasing tariffs?
If your brand ships from a region impacted by the recent tariff changes, you may see shifts in purchasing behavior from US retailers as they adjust to increased costs.
How will these changes impact US brands?
If your business is based in and ships from the US, here’s how these changes may affect you:
If you buy components or manufacture your products from outside the US, it’s likely your supply costs will increase.
- Your retailers will not pay any of the new tariffs at this time – whether they are based in the US or elsewhere.
- You may see increased demand from local retailers seeking to minimize their own import tariff costs.
How will tariff changes affect brands in countries with increasing tariffs?
If your brand ships from a region impacted by the recent tariff changes, you may see shifts in purchasing behavior from US retailers as they adjust to increased costs. This could result in fewer orders from the US.
My local postal carrier paused shipments into the US, what should I do?
A number of national postal providers have temporarily paused shipments to the US. This is due to uncertainty around new technical requirements tied to tariff changes to the de minimis exemption, which took effect on August 29, 2025.
If your local postal carrier has paused shipments, we strongly recommend exploring alternative options to fulfill US-bound orders.
Shipments sent through UPS, DHL (Express service) and FedEx remain unaffected, so these are all great alternative options to consider. These carriers are also available via Ship with Faire, and brands can continue to send orders via these carriers to the US without disruption.
What can I do if I shipped an order using an impacted carrier?
While the national postal service has paused shipment to the US, if you have already shipped an order using an impacted carrier we recommend contacting the carrier to have the package returned to you. Once you receive it, you'll have the option to either send it again with a different carrier or cancel the order. Please contact us if you need any help with reshipping or cancelling.
What should I do if my costs are increasing?
If you buy components or manufacture your products from outside the US, it’s likely your supply costs will increase. While every business is unique, here are some approaches we have heard from our brands:
- Some brands are negotiating directly with their suppliers to reduce costs and split tariffs, while others are finding ways to source their products locally.
- Some are evaluating their current supply and, if they have enough stock on-hand for the next 3-6 months, are waiting to make decisions about their supply chain given how quickly the situation is changing.
- Some are considering whether to raise their prices if they are running low on stock. It’s important to not rush to change your prices without understanding the implications for your business.
What is the best way to adjust my pricing?
We recognize that if you source materials, components, or finished products internationally, your production costs may rise significantly, affecting both your wholesale and direct-to-consumer pricing.
If you decide to adjust your pricing across all channels, you can match them on Faire directly from your Brand Portal (and save time with our Bulk Uploader tool), or if you use an integration with price sync, the prices will flow through automatically. Before you make changes, be sure to review Faire’s wholesale pricing policy.
How can I update the ships from information on my page?
Keeping your shipping origins current is important for transparency with retailers, and it helps us provide accurate shipping estimates on your orders. Your default shipping origin should represent where the majority of your products are shipped from. If your shipping origins are currently incorrect please let us know and we can update that for you.
Why do I need to ensure my products have the correct country of origin or Made in label?
It is important to make sure your country of origin or Made in information is aligned with your customs documents to ensure a smooth experience for your US customers and helps Faire calculate duties accurately on your behalf.
For example, if your customs forms list China as the country of origin, it's important that the "Made in" information on Faire also reflects China. This ensures your US customers understand that duties on Chinese imports may apply, preventing confusion or unexpected issues with their order.
How do I determine my “Made in” location?
The country of origin or Made in should reflect the country of manufacture, production, or growth of the product – in accordance to country of origin (COO) based on the definition used by the US Customs & Border Protection. The country of origin of a product may be changed in a secondary country if the second country constitutes substantial transformation or impacted by rules outlined here.
If you personalize or finish imported items—for example, printing, embroidering, or hand-decorating apparel, mugs, or other blanks after they arrive in the US—these types of modifications typically do not change the product’s country of origin under US Customs guidelines. In those cases, the Made in label should still reflect the country where the original item was produced.
How to review your country of origin (Made in) information on Faire?
- From your Faire brand portal, go to My shop and select Shop page
- Under About your brand, review the Products made in field to ensure it matches what’s listed on your customs documentation
How do I change my Made in information if it differs on a product level?
The Made In location can be selected for each product individually if your products are manufactured in different places.
- Navigate to your Products page and click on a specific product
- Scrolling down to Product details and click General
- Add the relevant Made in location for the product
You can also edit this information in bulk from the Products page by clicking Bulk Edit, selecting Change columns and adding Made in from the Basic information toggle.
Will Insider free shipping coverage change because of tariff updates?
No, Insider shipping coverage for your brand hasn’t changed due to recent tariff updates.
We temporarily covered import duties for US Insider retailers on eligible orders through June 30, 2025. That limited-time benefit has now ended, and there’s no longer any duties coverage included with Insider.
Retailers who are currently eligible for Insider free shipping with your brand won’t see changes to their shipping coverage as a result of the tariff update. However, Insider free shipping coverage can still change over time. We periodically update which brands are covered for each retailer based on factors like:
- Your shipping location’s proximity to the retailer
- Your historical shipping costs to that retailer’s zip code
If a US Insider retailer places an order from an international brand—including yours—they’ll be responsible for any import duties charged by US customs as the importer for the shipment.
I ship from two countries, can both be listed on my brand page?
No, currently only one Ship from location can be listed on your brand page. We recommend choosing the location where you ship the majority of your orders from.
A retailer cancelled my order due to tariffs, will this impact my Top Shop?
No, we only take into account orders that are cancelled by you, the brand, when calculating Top Shop metrics.
A retailer has already refused my order and returned it to me, what should I do?
As the importer, retailers are responsible for and expected to accept every order they place on Faire. Refusing the package will not automatically result in a refund for the retailer.
To ensure retailers are prepared and informed we surface reminders about duties and taxes at several points throughout the shopping experience.
If packages are returned to you, please contact support so we can help facilitate with the retailer to make sure this order gets delivered.
Can I control where my products are sold?
Yes. By default, brands are available to all locations where Faire is live. If you would like to update this in light of the tariff changes you can manage this from the Shop settings page of your account. To restrict selling to a country, deselect the country from the list of countries in your Account settings.
How will my retailers see the tariffs in their experience?
Duties are calculated based on the type of goods being imported, as determined by the tariff codes provided by the brand. We provide an estimate for the cost of duties at checkout, and retailers will receive an invoice from the carrier upon import. We use a 3rd party service to help provide estimates at checkout, however the final cost is determined by customs. These estimates will include the new tariffs.
Is Faire making any changes to support customers with these new tariffs in place?
Our team is carefully reviewing all the official communications coming in from various governments and working to understand exactly what these changes mean for our Faire community.
Rest assured that we're here to help you stay compliant with all regulations and are committed to navigating these changes together. We are actively investigating ways to improve our platform in light of this news and will share more information as it becomes available.
How will the specific duty flat-rate fee amount be applied, by item or package?
Items imported through the international postal network are likely to be assessed a specific duty per package, and not per good within a package.
Please note: Ultimate determination lies with U.S. Customs, and if your shipment includes multiple packages, the flat rate duty will be applied to each package separately. This means your retailer will be charged: flat rate × number of packages.