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Setting up US tariffs on Shopify

How to setup US tariffs on your Shopify Store.

 

Background:

The President of the United States has invoked a series of executive orders that directly affect cross-border eCommerce. As a seller shipping to US customers, you need to be aware of the following important changes to US import tariffs:

1. Removal of the de minimis threshold
 

  • The current de minimis level of USD 800, which previously allowed low-value shipments to enter the US duty-free, will be fully removed for all commercial shipments as of 29 August 2025.
  • This applies both to goods shipped directly into the US and to goods released from bonded warehouses for domestic consumption.
  • For certain countries, the de minimis exemption has already been removed. For example, goods originating from China, Russia, and Belarus are subject to duties regardless of value, already before 29 August 2025.

2. Import duties by HS code and country of origin
 

  • Import duties are now applied to most products entering the USA. The duty rate is determined by the product’s HS code (Harmonised System customs classification) and its country of origin.
  • It is critical to note that the country of origin is not the country of shipment.
  • Example: if you ship a product manufactured in China from a warehouse in the UK, the country of origin must be declared as China, not the UK.
  • The declared country of origin must be provided both to the US customer and to US Customs and Border Protection (CBP) in the electronic customs dataset.

3. Distinction from US sales tax obligations
 

  • This tariff system should not be confused with state sales taxes.
  • If your business has an economic nexus in a US state (for example, exceeding sales thresholds in California, Texas, or New York), you are still required to collect and remit sales tax in that state. Import duties and sales taxes are separate obligations.

4. Collection and payment of duties
 

  • Import duties are collected by US Customs and Border Protection agency (CBP) upon entry.
  • In practice, the carrier (such as USPS, UPS, FedEx, or DHL) pays the duties to CBP on your behalf, end customer in the USA is not able to pay duties
  • Therefore, as a merchant, you must:
  • Collect the correct duties at checkout from the customer, and
  • Remit these amounts to your carrier, who will then settle them with CBP.
  • This requires your chosen carrier to support the new US duty payment process. Merchants should verify carrier readiness before shipping.

5. Shopify’s compliance solution
 

  • Shopify has introduced a built-in tariff calculation system that ensures merchants on all Shopify plans can comply with the new US import tariff framework.
  • Shopify currently applies the de minimis threshold on an item-by-item basis:
  • Goods from China (where de minimis is already abolished) are always subject to duties.
  • Goods from the European Union and many other countries remain exempt if the total order value is under USD 800.
  • If the order value exceeds USD 800, duties are applied to EU items as well, at the applicable EU duty rate.
  • After 29 August 2025, when the de minimis exemption is eliminated entirely, duties will apply to all goods, regardless of value or origin country.


 

Shopify store setup for US duties

  • Set up the taxes and duties for the USA
  • New Shopify Markets schema 

Set up US as separate market in the Market section of your main menu if you have not done it yet:

Name the market (“USA” in the example), choose the currency and the applicable exchange rate, move to taxes and duties section:  

Enable duties and import tax and choose the way how they are shown in the checkout: 


 

After having saved the changes (top of the page) you will see the new market configured: 




 

Classic  Shopify Markets schema

Enable duties in the tax and duties section of the main menu: 


 


 

Go to general settings menu and choose ”Markets” and go to “Create market” in the upper right corner :  

 

Create a new market (named USA in the example below), add the country “United States” to the market :

Enable collection of duties in the USA market: 


 

Collection of duties is enabled after you press “Save” at the top of the page. 

Setting HS codes and the country of origin


 

You can add HS codes and country of origin on your store products. You may have already done this before, but each product must still be reviewed to ensure accuracy.

To set them up, go to the product page in Shopify and enter the HS code for that product. Repeat this for all products in your inventory.


 

You can identify applicable HS codes for your items using the EU Commission HS code finder tool: https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en 


 

You need to input 6 digit HS code into the inventory settings. 


 

It is of paramount importance that both HS code (either WTO or HTSUS ) along with the country of origin is entered for all you items. Missing data will result in delayed delivery/extra charges or outright destruction of your parcel. 


 

Next steps. Logistics applications

Merchants should be aware that even if they collect duties in the checkout it is the last mile service providers who are responsible for  actual settlement of the duties with the US authorities. 

So every merchant should ensure that their delivery solution and existing integrations support US duties. 

UK Merchants if they already use Royal Mail services are welcome to try Royal Mail PDDP. Royal mail recently notified customers on US PDDP solution that will help with US new tariff regulations. You can read more here  Important information about changes to the export of goods to the USA | Royal Mail Group Ltd


 

Important items to check in your logistics supply chain:

  1. Is the customs value of your goods transferred properly to the last mile provider if you use a shipping integrator (Easyship, Shipstation etc.)?
  2. Do your last mile service providers receive HS codes and the country of origin data from your Shopify store ? If not,  they might require  that this data is entered manually in their own dashboards or saved on their side .
  3. Ensure that your last mile provider is able to support new US tariffs. It might be prudent to contact them and ask.



 

EAS is ready to provide support on the USA store setup at an additional cost from scratch. If you decide to set up the store yourself , we will still  support you but due to a large number of request our support may be delayed.  

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