Understanding tariffs is not very complicated, but since they are relatively new to U.S. consumers, I will do my best to explain their reality based on practices in the rest of the world. The first and most important fact to mention is that tariffs, regardless of how they are perceived, will always impact the buyer. Tariffs represent a form of taxation that Europeans are pretty familiar with due to their VAT system and the tariff duty fees imposed on incoming packages from abroad—something that became particularly evident after Brexit for UK and European troopers. Ultimately, no matter how you look at it, the result is that the buyers end up paying more. While tariffs may affect the importers, the extra costs will invariably be passed on to the consumer, meaning you and I will pay more for the same product.

Previously, the United States had a de minimis value, which stipulated that packages valued under $800 would not incur any taxes. However, it seems that this threshold has been scrapped for some countries, while for others, the value has decreased to various amounts, further adding to the uncertainty.

Now that we know there will likely be tax collection and that you will need to pay for it, let’s clarify how this works. The basis for taxation is the declared value of the package. Many people believe that this declared value reflects the actual value of the items inside the box. However, the reality is that the declared value includes both the value of the items and the shipping costs. This is crucial because the size of your package can significantly increase shipping costs, which in turn affects the total declared value that will be taxed.

Another important point is that when using a private courier company, they aim to expedite the delivery of every package. To do this, they establish direct links with customs offices to prepay entry fees. As a result, once a package passes customs inspection, it can be delivered quickly because the courier company has already settled the necessary customs fees. This means you cannot dispute the taxes imposed on a package, as they have already been paid by the courier company.

Furthermore, you will receive communication from the courier company indicating that your package has been processed and is ready for delivery. However, they will require you to pay the taxes plus a service fee for handling and expediting the customs clearance process. Once again, you won’t have the option to refuse payment, as the transaction has already taken place. This allows courier companies to charge an additional 15-20% in service fees, which can quickly add up to a substantial amount you will need to pay. Ultimately, in this system, the buyer is responsible for covering the costs of these tariffs and taxes.