Who Really Pays the Tariffs? My Tool Order Example

So, here’s the thing — if there’s any doubt about who actually pays tariffs, let me share my recent experience.

I was about to order a specialty tool from a small business in the UK. It’s one of those niche tools that simply isn’t made in the U.S., and the total cost of my order came to $205.47. Shipping was even free since my order was over $175. Easy decision, right?

Well, not quite.

When the order was processed through U.S. Customs, UPS estimated that an additional $60 in tariffs would be due before delivery.

The $800 Threshold Is No More

There used to be a rule — called the de minimis exemption — that allowed most shipments under $800 to enter the U.S. without tariffs. For makers and shoppers, that often meant smaller orders came through without surprise fees.

But that safeguard is gone.

  • On May 2, 2025, the exemption was removed for imports from China and Hong Kong.

  • On August 29, 2025, the U.S. eliminated the exemption entirely for imports from every country【web†source】.

So while my $205 tool order might once have slipped through, the new reality is that even small packages can be charged tariffs.

What Tariffs Really Are

Tariffs are essentially taxes on goods imported into a country. They aren’t paid by the overseas seller. They don’t go into the pocket of the small business in the UK. And they certainly don’t disappear into thin air.

They’re paid by me — the buyer — right here in the U.S.

When my package arrives, UPS will settle the tariff with Customs and then collect the fee directly from me before releasing the shipment.

Where Does the Money Go?

That $60 doesn’t support the UK small business. It doesn’t improve shipping speed. It doesn’t fund better packaging. It’s simply collected by the U.S. government as part of its trade policy.

In other words:

  • The maker in the UK gets my original $205.47.

  • The U.S. government will get the $60 tariff.

  • I get the bill.

Why It Matters

For small makers like me — and for customers like you — tariffs are part of the hidden costs of doing business internationally. They can discourage small businesses from sourcing unique tools and materials that aren’t available domestically, and they can make imported goods feel suddenly much more expensive.So next time you hear about “tariffs on foreign goods,” remember: they’re not some invisible fee absorbed by another country. They land squarely on the shoulders of people like me (and maybe you) who are just trying to support small businesses across borders.

What You Can Do Before Ordering

If you’re planning to order tools, supplies, or even personal items from overseas, here are a few ways to avoid sticker shock:

  • Look up the HTS code (Harmonized Tariff Schedule) for your item to see what duty rate applies before you buy.

  • Check if your carrier charges brokerage fees. UPS, FedEx, and DHL often add a service fee on top of the government tariff.

  • Remember the $800 exemption is gone. No matter the package value, tariffs may still apply.

  • Budget for surprises. If you’re importing something essential for your business, add a cushion in case duties or fees are applied.

A little research up front can save you from unexpected costs at the door.

Back to blog