Introduction to the New Tariff Rules

On August 29, 2025, President Trump’s executive order ending the de minimis rule took effect. This rule had previously exempted shipments valued under $800 from tariffs, benefiting small online purchases. Now, these small purchases are no longer exempt and will face higher costs due to the newly imposed tariffs.

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Surge in Tariff Revenue for the U.S. Government

The tariffs have had a major impact on government revenue. In 2025, the U.S. government has collected $88 billion in tariff revenue so far, with $23 billion of that total coming from August alone. Despite Trump’s repeated assertions that other countries will absorb the costs, American consumers are ultimately footing the bill. The tariffs are being passed down from importers to consumers, resulting in increased prices for everyday goods.

Real-Life Examples of Tariff Impact on Consumers

Americans are already feeling the financial impact of these tariffs. One Reddit user shared their frustration after being charged $54 in tariffs for a $100 jacket bought from Japan. The breakdown was $36.50 in tariffs and the rest was DHL processing fees. The user noted, “It’s over 36% of the jacket’s price, just because it’s sold by a Japanese seller.” This highlights the significant additional cost placed on everyday purchases due to tariffs.

Another consumer shared an experience of being charged an additional $29.25 for a $42 coffee accessory order from Taiwan. This charge came from both the 20% tariff on Taiwanese imports and processing fees by DHL. As a result, even small, affordable orders have become more expensive due to these tariffs.

Retailers Including Tariff Fees in Checkout Carts

In an effort to avoid surprising consumers, some online retailers are integrating tariff charges directly into their checkout process. One Reddit user shared their experience of seeing “Trump Tax” listed as an extra charge during their early Christmas shopping. Many other retailers list these fees as “import taxes” or “duties.” As one user pointed out, “Tariffs are a tax on consumers, and anyone who’s studied basic economics knows that.”

The Global Impact of Tariffs on International Trade

These tariffs have not only impacted U.S. consumers but have also affected global trade. More than 30 countries, including Australia, India, and Japan, have suspended shipments to the U.S. In addition, several U.S.-based retailers have chosen to stop shipping abroad due to the increased costs. One business explained, “We can’t absorb these costs long-term. We can’t offer the service to pay these tariffs upfront anymore.” As a result, American consumers now have fewer options when it comes to purchasing international goods.

Small U.S. Businesses Struggling with Tariffs

Small U.S. businesses are among the hardest hit by these tariffs. For instance, one artist shared a tweet showing a UPS customs bill for two baseball hats ordered from China, with multiple tariffs totaling $3.96, plus a $14.00 disbursement fee. This “tariff stacking” has caused major problems for small businesses that import from China. To cope, many small businesses are either raising their prices or ceasing imports altogether, impacting their profitability.

The Toll on International Sellers

Small businesses overseas are also struggling due to the tariffs. A Canadian Etsy seller shared that U.S. customers stopped buying once tariffs were added to their shipping prices. Another seller shared, “I stopped shipping to the U.S., and it killed 80% of my sales.” With U.S. shoppers increasingly choosing domestic alternatives, foreign sellers are seeing a significant decline in their sales, further exacerbating the global impact of these tariffs.

Decline in Manufacturing Jobs Despite Tariffs

Trump’s tariff plan was intended to bring manufacturing jobs back to the U.S. However, recent reports from the Bureau of Labor Statistics show that 78,000 manufacturing jobs have been lost in 2025. Of those, 42,000 jobs were lost after the tariffs were introduced in April. Economic uncertainty, high interest rates, and labor shortages have contributed to this decline, proving that the tariffs have not yet achieved their intended goal.