Thousands of Orders Cancelled Due to New Shipping Tax
Discover the impact of the new shipping tax as thousands of cancelled orders disrupt supply chains and raise customer concerns.
Thousands of Orders Cancelled
Thousands of Orders Cancelled: A new U.S. shipping rule has caused considerable confusion. On July 30, President Donald Trump implemented a change. This change took effect yesterday, August 31, 2025. Now, carriers must collect a tax from merchants before they reach the U.S. They must use a service approved by U.S. Customs and Border Protection.
By Friday at noon, only a dozen services were allowed to collect and pay these duties. This change has had a dramatic impact on online shopping worldwide.
The “de minimis” rule, which allowed goods valued under $800 to enter duty-free, ended on Friday at 12:01 a.m. Now, many cheap international items face a 10 to 50 percent tax. Or, they might get a flat rate of $80 to $200. This shipping tax impact has led to thousands of canceled orders. Businesses and shoppers are now dealing with higher costs.
Thousands of Orders Cancelled: Key Takeaways
- The U.S. ended the “de minimis” exemption, resulting in widespread supply chain disruptions.
- Many international shipments are now subject to a tax rate of 10% to 50%, or a flat rate of $80 to $200.
- Only a dozen service providers have been certified to collect and pay these new duties.
- Thousands of orders have been canceled as businesses and consumers face higher costs.
- Customer dissatisfaction is on the rise due to the sudden increase in shipping costs.
Understanding the New Shipping Tax Regulation
The old rule for small items has changed. Previously, items worth $800 or less could be brought in without tax. Now, all imports face new taxes, making things more expensive.
The End of the De Minimis Rule
The old rule for small packages is no longer in effect. Now, small items get taxed, making shipping more costly. In 2023, $66 billion in small Chinese items went untaxed.
This change will make the U.S. Treasury $10 billion richer each year. Starting May 2, items from China and Hong Kong will incur a $100 charge per package. This will go up to $200 after June 1, affecting online shopping worldwide. For more info, visit Investopedia.
Implementation and Challenges
Carriers now have to collect taxes for the U.S. Customs. This has made things harder for them. Over 30 countries, like Australia and Germany, have stopped sending items to the U.S.
This has caused significant problems for shipping and stores. For the latest on U.S. delivery issues, check India Shipping News.
Thousands of Cancelled Orders Due to New Shipping Tax
The new shipping tax has led to many orders being cancelled. This change affects big companies and small shops alike. It has caused big problems in the supply chain, making customers unhappy and hurting businesses worldwide.
Over 25 countries have halted or altered their methods of sending goods to the U.S. This big change has made it hard for some to ship on time. For example, an Australian fashion brand named Sabo had to delay its shipments by more than a week. A British retailer was also unable to send out orders.
These problems illustrate the challenges posed by the new rules for everyone. Following a similar rule change in May 2025, there was a significant decline in online shopping from China to the U.S., exacerbating the situation. Major carriers, such as Deutsche Post and Royal Mail, ceased shipping operations due to these rules, exacerbating the supply chain disruption.
These changes are causing big problems for businesses. They are finding it hard to adjust fast. For more info on how trade rules affect businesses, check out [this detailed analysis].
Thousands of Orders Cancelled Conclusion
The new shipping tax has significantly altered U.S. trade policy. It has caused big problems in many areas. The shipping tax impact has made things more expensive for everyone.
Previously, packages could be imported into the U.S. without additional fees. Now, businesses and people have to pay more. This has resulted in numerous canceled orders and delayed deliveries.
Companies and shoppers are now dealing with these new rules. Some businesses might raise their prices by up to 50%. Walmart is trying to keep prices low, but it’s becoming increasingly difficult.
This change is making items such as car seats and building materials more expensive. It’s all due to new rules designed to help U.S. businesses compete more effectively.
However, implementing these new rules has been very challenging. Over 25 countries have halted shipments to the U.S. until they resolve how to collect the new taxes. This illustrates the difficulty of striking a balance between rules and freedom in the market.
For more information on how large retailers are addressing these changes, click here.
Thousands of Orders Cancelled FAQ
What is the new shipping tax regulation?
The new rule changes how goods valued at $800 or less can enter the U.S. Previously, these items were duty-free. Now, they face a tax rate of 10 to 50 percent. Alternatively, a flat rate of to 0, depending on the merchant’s payment method.
How has the end of the de minimis rule affected shipping costs?
Ending the de minimis rule resulted in significantly higher shipping costs. Many items are now subject to significant taxes. This makes it more expensive for businesses and individuals to import goods into the U.S.
Why have thousands of orders been cancelled due to the new shipping tax?
Many orders were canceled due to the new tax. It increased costs and caused problems. Businesses struggled to keep up with the latest regulations and taxes.
How are shipping carriers and merchants affected by the new tax?
Carriers and merchants face big challenges with the new tax. They must use approved services to collect taxes. This has caused delays and made things more complicated.
Which countries are most affected by the new shipping tax regulation?
Over 25 countries have stopped shipping to the U.S. or are changing their plans. Countries like Australia and the UK are seeing big problems.
What impact is the new shipping tax having on small and independent vendors?
Small vendors on sites like Shopify and Etsy are particularly hard hit. The tax has caused delays and cancellations. This has made customers unhappy and lost sales.
How are customers reacting to the increased shipping costs and order cancellations?
Customers are unhappy with the higher costs and cancelled orders. They are frustrated with the delays and higher prices for international items.
What are the broader implications of the new shipping tax on the global market?
The new tax changes U.S. trade rules. This could lead to higher costs for consumers and fewer options. The goal is to generate more tax revenue and support U.S. businesses. But it’s causing problems in global e-commerce and supply chains.
