Latest news with #KrystalWahnschaffe
Daily Mail
29-06-2025
- Business
- Daily Mail
Mom is hit with $372 tariff bill on top of $900 summer wardrobe refresh
A mom just wanted new clothes for her upcoming vacation. Krystal Wahnschaffe, 35, a Texas-based mom, said that she placed a $919 clothing order from a trendy shop, according to Business Insider. But when the package showed up at her Dallas home, it came with something she hadn't expected: a $372 customs bill. 'That was frustrating, obviously,' she told the publication. 'If I'm going to be charged all this extra money — maybe that changes the calculus of what clothes I keep and what I don't keep.' The unexpected fee came down to international trade rules — and a complicated web that has failed to clearly communicate who's responsible for paying the bill. A big part of her confusion stems from the end of the so-called de minimis exemption, which previously allowed shipments under $800 to enter the US tariff-free — regardless of origin. Before the rule change, foreign companies like Shein and Temu could produce goods overseas and ship them directly to US customers without charging import fees. The hyper-efficient business model allowed those brands to undercut domestic retailers. Some US companies even blamed the exemption for driving them out of business. But now, that exemption is gone. Brands that once relied on tariff-free pricing are starting to see some of those hidden costs surface. In some cases, like Wahnschaffe's clothing order, shoppers are now entirely responsible for paying the bill. Because Wahnschaffe's items were made in China and shipped during a period of peak tariffs, her order triggered high import duties — including a 125 percent tariff on a red sweater vest that originally cost around $60. FedEx paid the import tax upfront to release the package, then handed Wahnschaffe the bill. This won't happen for the majority of imported consumer goods. Typically, products stop at a warehouse operated by a retailer, which pays the import fees and folds those costs into the price the customer sees at checkout. But for the direct-to-consumer businesses that skip the US warehouse altogether, the bill is often going unpaid until the products arrive on a customer's doorstep. The Texas mom isn't alone. Dozens of buyers have taken to social media, confused and angry about surprise charges on international orders. Shoppers at standalone stores are less likely to see the massive one-time bills - but prices in stores will likely still increase from the levies 'Why are these companies not telling us that there is going to be an additional bill,' one creator said on TikTok. Even professionals are surprised by the rules. Wirecutter, the product testing site run by The New York Times, recently investigated the issue by buying items from a variety of overseas sellers. In one case, a $56 ukulele turned into a $158 charge after duties were applied. Other items arrived without any additional fees. There was no clear explanation or advance notice about which products would be taxed and which wouldn't. Chain retailers have offered much more consistent price increases since President Donald Trump launched the signature policy. Customers have started to see pricing spike in some retailers — employees at Walmart and Target have been posting pictures online of massive bouts of price changes coming to their stores. But online stores without a domestic footprint — particularly fast-fashion sellers and niche direct-to-consumer brands — often ship directly from overseas, leaving customers on the hook without warning. Experts advise checking where a product is made, reading shipping policies carefully, and preparing for possible customs charges when ordering online. Even trade pros aren't immune. Lawrence Friedman, a longtime trade attorney, told Wirecutter he recently got hit with a surprise duty on a small online order. 'This is my job, and I didn't even notice it was an imported watch band,' he said.
Business Insider
24-06-2025
- Business
- Business Insider
A Texas mom ordered her spring shopping haul. Then she got a $372 tariff bill.
Krystal Wahnschaffe wasn't expecting a bill in the mail. The 35-year-old mother ordered a spring clothing haul online from the website Damson Madder in early April: new tops, jeans, and a couple of outfits for an upcoming vacation. She doesn't often spend money on herself — running a household, paying for groceries, and affording the kids' summer camp gets expensive — and she was in desperate need of a wardrobe refresh. A few weeks later, a crisp white FedEx envelope arrived at her Dallas home. The bill explained that she owed the government $372 for tariffs, on top of the $919 that she initially paid to the clothing retailer. A red sweater vest she ordered for about $60, for example, would actually be costing her over $200 once the 125% made-in-China fee and other costs were applied. Even the items she had returned and received a refund for were subject to a tariff. "That was frustrating, obviously, because — if I'm going to be charged all this extra money — maybe that changes the calculus of what clothes I keep and what I don't keep," she told Business Insider. Wahnschaffe said she's in contact with FedEx trying to appeal the tariff bill on all, or some, of her clothing order. A representative for FedEx said that the company facilitates "the payment of required duties and taxes to the government on behalf of the seller/buyer" but does not determine who is charged for the tariffs or the amount. The clothing brand, Damson Madder, did not respond to a request for comment. Wahnschaffe said tariff anxiety is changing her shopping habits Wahnschaffe isn't the only American with tariff sticker shock. President Donald Trump's rapidly-changing trade policies have rocked the economy in recent months and sparked recession fears. Some companies like Walmart have begun hiking prices to cover the cost of importing goods, while others are passing the levy expense directly onto shoppers. The University of Michigan consumer sentiment survey — a key indicator of how Americans are feeling about the economy — slid 11.3% year-over-year in June, a faster-than-typical swing, though the index has recovered slightly compared to its spring free fall. Some shoppers are sharing their surprise tariff bills on social media. US retail sales also dipped by 0.9% in May, a larger-than-forecasted figure, especially compared to April's 0.1% sales decline. Wahnschaffe anticipates that her tariff bill experience will change her shopping habits. She and her husband are only buying necessities right now, she said, adding that " luxury things" like a handbag or a new pair of shoes will have to wait until the economy feels more stable. She's noticed a similar shopping pullback from her friends. Going forward, she also wonders how federal tariff policy will impact other parts of her life. Wahnschaffe is a content creator and runs a popular DIY home projects page on TikTok and Instagram. She anticipates that the materials she uses for projects like wood and paint could become more expensive if they're imported from other countries. She feels similarly about groceries and other everyday necessities that are grown or made outside America. "We've created an economy where we buy things from other countries and manufacture them there," she added. "And we need this stuff to live."
