As I pulled into a Buc-ee’s gas station here in Georgia last week, it was impossible to ignore the huge sign planted at the corner: “Tariffs are a tax paid at the pump by you, the consumer.”
Like most of us here in the Land of the Free, I’ve been hearing lots of anxiety lately over President Donald Trump’s tariffs. That’s not a word many Americans hear in their day-to-day life, but they are essentially taxes (also called duties) placed on imported goods. Trump has significantly increased tariffs on many overseas products, especially those from China, Japan, and Europe.
Like many Americans, that’s not something that I was expecting to actually impact my life. But then I got a $58.50 bill in the mail from FedEx to pay “additional tariffs” on some high-tech, Chinese-made glasses I was planning to review for GearJunkie.
With Trump now implementing even more tariffs — 10% on all countries and higher rates for China, Japan, and Europe — many Americans may end up with a surprise bill for online purchases.
Let me explain.
Careful What You Order
GearJunkie editors constantly receive new gear for testing, so I barely thought about the pair of AI-powered cycling glasses that a Chinese company decided to send me. But then I received a phone call and email from FedEx asking me to clarify details about the shipment to get it past U.S. Customs officials.
A few days after that, I received the package with the glasses, followed by a bill in the mail from FedEx. They want me to pay $58.50 for the total duties associated with the shipment. It shocked me, as I’ve never received a bill like this.
Apparently, I’m not the only one. Other Americans across the country are receiving similar bills from delivery services like FedEx, DHL, and UPS, Reuters reported.
Surprised and a little agitated, I called the number for FedEx customer support. The line initially offers phone assistance, and then informs you that it’s no longer available and you’ll need to use email.
When I heard back from FedEx via email, they explained that the Chinese company had indicated that the package’s recipient (me) would pay the additional taxes. That means FedEx must pay those taxes to get the package through Customs.
So to recap: the company passed on the burden of the tariff to FedEx, which then passed it on to me. Notably, FedEx did not answer my other question: What are the consequences if I don’t pay the tax?
But this episode also raises an even more important question: If foreign companies can simply choose to pass these taxes onto consumers, how will Trump’s tariffs actually hold them accountable, instead of Americans?
I’m fairly certain the answer to those questions is the same. Nobody really knows.
Chaos Reigns
Trump has repeatedly been vague about the details of his planned tariffs. Sometimes he institutes them without the advance notice that would allow U.S. companies to adjust and communicate the change to their customers. Other times, Trump has revoked huge tariff increases just days after putting them in action.
The result is pervasive uncertainty that makes it impossible for businesses to plan for the future. It’s not surprising to me because that’s exactly what CEOs and business leaders of the outdoor industry told me would happen. When I interviewed a dozen of them in November and December 2024, they predicted a “scary future” if Trump followed through on campaign promises to increase tariffs.
Now Trump has not only followed through, but also instituted tariffs even more broadly than expected. He has added major tariff increases not only to China, Canada, and Mexico, but also on nearly all imported automobiles. Trump later added an exemption on the auto tariffs for Canada and Mexico.
‘De Minimis’ No More
Even smaller purchases will be affected because Trump also removed the De Minimis exception for China, which allowed products valued at less than $800 to enter the U.S. duty-free.
That’s no longer the case. So, that cheap clothing from popular Chinese companies like Temu or Shein? You might get a bill. Those cheap electronics and e-bikes you find on Amazon? If they’re made in China, you might get a bill.
Here at GearJunkie, we often cover crowdfunding campaigns on Kickstarter and Indiegogo for innovative outdoor gear. But that fresh gear often comes from China. So once it arrives, you just might get a bill on top of whatever you pledged during the initial campaign.
Trump Tariffs: ‘Liberation Day’
If that feels unfair to you, I’m inclined to agree.
The e-commerce industry is often deliberately vague about where products are actually made, or where the home company is based. And Americans have long enjoyed the privilege of buying whatever they want online without worrying about the personal impacts of a global trade war.
But that’s now the situation we all find ourselves in.
As he spoke from the White House Rose Garden on Wednesday, Trump named April 2 as “Liberation Day,” claiming the increased tariffs will free the U.S. from dependence on foreign goods.
“April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed and the day that we began to make America wealthy again,” Trump said.
While I love the idea of buying more products made right here in the USA, Trump’s tariffs may not be enough to revive American manufacturing. That’s according to the majority of economists, who worry that the tariffs could tip the U.S. into a recession. In the meantime, the world’s governments, businesses, and delivery services must figure out how to adjust to the new reality.
That’s hard to do when Trump’s “Liberation Day” could turn out to be another short-lived tactic. Trump himself acknowledged that Americans will feel “some pain” from the tariffs. Now that the stock market is in free fall and persistent inflation hikes prices on everything from eggs to e-bikes, how long will Trump hold steady?
The president has proven difficult to predict, so countries like China have plenty of reason to believe that he may change his mind again. With businesses struggling to cope with the uncertainty, prices will likely increase no matter what happens in the coming months — and American consumers will have to foot the bill.
Read the full article here