A number of viewers were surprised by the steep import fees on the flash cartridge I reviewed last week for the old Nintendo 64—especially when ordering from sites like AliExpress or Temu. That’s because a major change is now underway with how tariffs are applied to small international packages, and many may be hit with taxes that amount to 145% of the item’s value.
I take a look at this in my latest video.
In the case of that flash cartridge for the Nintendo 64, while the product itself cost $40.84, the final charge ballooned to over $80 once tariffs and taxes were factored in. The bulk of that—more than $38—was tariff-related. This is due to the expiration of the so-called de minimis exemption, which used to shield low-value imports from duty charges.
The de minimis rule allowed shipments under $800 to bypass tariffs, even if the items were normally subject to import duties. It applied to direct-to-consumer shipments from overseas platforms like AliExpress, Temu, and Amazon’s new import-focused app called “Haul.” That exemption has now been eliminated for goods coming from China and Hong Kong.
To illustrate how dramatic this shift is, I recently ordered a Ugoos AM6B Plus TV box from AliExpress. I paid around $158 for it, but under the postal import rules, I would be hit with either a $100 flat fee or 120% of the product’s value whichever the postal service chooses. That flat fee increases to $200 after June 1st.
If the same item is shipped through a private courier like FedEx or DHL, the charges can be even worse. There’s a baseline 20% emergency tariff and an additional 125% reciprocal tariff on certain goods, totaling 145%, resulting in a total tariff of $229.10! Some items like computers and smartphones have been exempted from the reciprocal portion, thanks to lobbying by major tech companies.
Take for instance a mini PC with an Intel N100 chip selling for $139. If it comes via postal mail, the tariff would be around $167 or the $100 flat fee. Through FedEx or DHL, the duty is more fragmented—roughly $38 in this case—but still significant. And this exemption only applies if the item is considered a “computer” under customs definitions. A game console or a TV box would not, even if they have the same components.
It’s also worth noting that origin matters. Goods from countries like Vietnam are still eligible for the $800 de minimis threshold and may not be subject to tariffs based on how trade negotitions are going. But customs can scrutinize these claims, especially if the manufacturing process wasn’t substantial enough to qualify.
Both the Trump and Biden administrations have taken interest in closing this de minimis loophole. While Biden’s team signaled support for reviewing it, the Trump administration acted quickly to close it, citing concerns over rising direct-to-consumer imports circumventing tariffs and import controls.
Right now, some platforms like Temu are starting to collect import duties upfront. AliExpress, on the other hand, may notify you of the obligation but leave collection to the post office or your shipping carrier. If duties go unpaid, the packages are considered abandoned and can be destroyed or auctioned off.
Temu does import in bulk and ships products from U.S. warehouses. In that case you won’t see a separate import charge at checkout in those cases, but the tariffs will make their way into the price of the item. Large imports are not exempt from the 145% tax and we’re starting to see companies raise their prices in response.
ASUS, for example, has announced 7% to 9% price hikes on some laptops. Anker is also reportedly raising prices by 18% or more on some items. Framework, which makes modular laptops, is also raising prices. Their situation is complicated since they sell all of their laptops’ individual components as separate products, some of which are subject to duties while others are not. That kind of business model becomes harder to manage under this kind of tariff regime, especially without the lobbying power their larger competitors enjoy.
Soon I’ll be speaking with Nick Mueller from HDRetrovision, a small business that makes high-quality cables for classic game consoles. They’ve carved out a niche in the retro gaming community, but these tariff changes could seriously impact their ability to serve U.S. customers if the costs become too high.
We’re at the start of what looks like a big shift. Prices are already moving up and will likely climb further as current inventories run out and new shipments arrive under the updated rules.
If you’re a regular buyer from international marketplaces, be very careful when shopping to ensure that you won’t get bit with enormous tariff charges when the package arrives in the USA. If the retailer doesn’t collect those fees from you at the time of purchase, you will need to pay them directly to the carrier. If you don’t, you’ll be out the item and the purchase price.