When a $29.99 Gadget Becomes a $64.71 Lesson

What Recent Tariff Changes Mean for Everyday Consumers and B2C Businesses

On April 29, 2025, I bought what looked like a simple, helpful household gadget from an overseas seller. The price? $29.99. Reasonable, right?

I knew that I would be responsible paying the applicable sales tax. So, at most, I expected to pay around $35. Imagine my surprise when the PayPal confirmation notification stated that I had authorized a charge of $64.71!

Wait – what???

To add insult to injury, the notification stated that the final amount was pending and subject to increase. Suffice to say I contacted the seller immediately to cancel, but I’m still waiting for the cancellation confirmation and the charge is still pending.

So what happened?

A breakdown revealed $20.17 in shipping and a $7.55 insurance premium (was this the cost of a customs bond?)—costs that were never disclosed to me upfront. The loss of the de minimis duty exemption is scheduled to take effect May 2, 2025. Were these costs applied in anticipation of the loss of the de minimis duties exemption? Probably, but I don’t know. All I know at this point is that a $29.99 gadget has cost me $64.71, and counting.

This small personal purchase highlights something big: recent trade policy changes are real and already affecting everyday consumers and businesses.

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Why This Matters—Even If You're Not Importing Goods from China

If you’re a consumer, an online seller, or a business that relies on cross-border supply chains, here’s what you need to know:

1. Tariffs and Low-Value Chinese Imports

Through a series of Executive Orders issued between February 1 and April 8, 2025, the Trump Administration implemented tariffs on Chinese imports, including those previously exempt. Goods valued at or under $800, once duty-free under Section 321 de minimis rules, will be subject to tariffs of up to 125%, effective May 2, 2025.

That means everyday e-commerce shoppers may now find themselves paying far more than expected for small, seemingly routine purchases from sellers from China.

2. Surprise: You May Be the “Importer of Record” and Therefore Responsible

Consumers purchasing directly from foreign vendors are often—unknowingly—the Importer of Record (“IoR”). That makes them responsible for applicable duties, taxes, and customs paperwork. Until now, most low-value purchases from abroad bypassed customs scrutiny. Not anymore. If consumers are the IoR, then the consumers are responsible.

3. The $2,500 Informal Entry Threshold Is In Flux

Typically, goods under $2,500 qualify for informal customs entry, allowing for faster processing and lower costs. A recent, brief suspension of this threshold caused significant concern about port delays and backlogs. While the informal threshold has largely been reinstated as of April 28, 2025, the trade environment remains volatile and Customs retains the right to require formal customs entries on these types of imports.

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What This Means for Your Business?

If you operate in the B2C space, or, even if you don’t but do depend on imports, the following steps would be prudent:

• Review your import workflows and clarify who bears the costs and duties — the vendor at origin or the buyer at destination (i.e., what are the Incoterms of your critical imports?);

• Ensure pricing transparency for end users to avoid complaints and chargebacks. We saw the Trump Administration pushback against Amazon on April 29, 2025 for wanting to provide shoppers with pricing transparency. Amazon pulled it back. But who is going to bear the brunt of the wrath of online shoppers who think they are buying a product for $X dollars only to be charged possibly twice that amount? This sounds like the ingredients of outraged consumers and a class action waiting to happen. So if you are in the B2C space, know your litigation exposure should your company opt not to disclose the additional fees;

• Check your contracts. Understand your detention and demurrage “free” days so that you can know your window to clear your goods without penalty in the event there is a customs backlog. Stay in close contact with your customs broker if your company does not handle customs clearance in-house;

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Bottom Line:
A customs backlog at the port for some imports could be a backlog for all imports. I recommend that you keep an eye on this space if your organization imports goods in case you need to pivot quickly, if necessary.