Paul Polk just wanted to do something good for his granddaughter. Instead, the Loveland, Colorado, resident became embroiled in America’s increasingly confusing tariff system — and one that made him wonder if it was even worth buying anything from abroad.
Polk’s granddaughter inherited her father’s 22-year-old audio station wagon, and a hub cap was missing. So he went online, found a replacement from a dealer in the UK and ordered it. The hub cap costs $67.
Then came the letter from FedEx.
When the hubcap arrived in the United States, Customs and Border Protection assessed a range of imported products. FedEx, which had already covered the tariffs as the shipping importer of record, demanded payment to Pollock — plus a $4.50 payment fee for handling the customs paperwork. All told, Pollock has a $41.88 tariff and a $4.50 fee for a $67 purchase — an effective tax rate of nearly 69%, as first reported by 9NEWS investigative reporter Steve Steiger (1).
The excise invoice breaks down the charges into four separate tariffs: 2.5% standard duty, 10% reciprocal tariff bound to the UK, 25% tariff for the passenger car segment and 25% tariff for the medium or heavy vehicle segment.
Keith Musks, a retired economics professor and former chief economist at the US State Department, reviewed the invoice and told Steiger that it appeared the tariffs were improperly hidden — each one was levied against the full value of the hub cap rather than properly applied.
Under current trade rules, auto parts imported from the UK are subject to a 25% Section 232 tariff under the Trade Promotion Act – a national security provision President Trump imposed broad tariffs on cars and auto parts in the spring of 2025 (2).
While the US-UK economic prosperity agreement, which was announced in May 2025 and came into force in late June, has reduced this rate to 10% for UK-origin parts, this lower rate only applies to parts destined for UK-origin cars – not German-made Audis.
However, goods covered by Section 232 auto parts tariffs are generally exempt from the separate 10% reciprocal tariff that also applies to UK exports. And the medium- or heavy-duty vehicle parts tariff — a 25% duty that went into effect on November 1, 2025 — should not apply to the hub cap for the regular station wagon.
In other words, the correct duty on Pollock’s hub cap was likely 25% – about $16.75 – not the $41.88 he received.
Steger’s investigation uncovered one man’s story, but tariff billing errors on small international purchases have become a nationwide problem since the de minimis exemption — set to expire in August 2025 — has fueled reports of abuse by the public.
NBC News documented a wave of surprise bills after the waivers were removed — including $1,400 for computer parts from Germany and $1,041 for handbags from Spain — with one trade consultant calling it “maximum confusion” (3).
On Reddit, a consumer reported being assessed nearly $8,000 in tariffs on a $200 order shipped via DHL from Hong Kong by an Asia-based retailer, as documented by Modern Retail; Figures are self-reported and not independently verified (4).
And in Miami, a consumer was charged $36 in duties and fees for a pair of tennis shoes from Germany with a standard tariff rating of “free” — meaning the only basis for the charges were the IEEPA tariffs, which the Supreme Court later overturned. This case has become a proposed class action lawsuit on behalf of millions of FedEx customers (5).
The pattern is consistent: Carriers struggle to correctly classify and assess tariffs on the millions of low-value packages that now require formal customs processing—and consumers pay for those mistakes.
For decades, any package sent to the United States with a declared value of less than $800 entered the country duty-free under the de minimis exemption. By 2024, nearly 4 million bags a day—more than 1.3 billion a year—have been cleaned under the law (6).
The Trump administration has phased out the exemptions: first for goods from China in May 2025, then on August 29, 2025 for all other countries. Now every international package – no matter how small – requires formal customs processing, correct tariff classification and payment of applicable duties. For a logistics company like FedEx, that means sorting millions of additional low-value packages every day.
The Nonpartisan Tax Foundation estimates that the tariffs will cost the average American household about $1,000 in 2025, making it the largest U.S. tax increase as a share of GDP since 1993 (7).
The Supreme Court’s decision to cut IEEPA tariffs in February 2026 provided some relief. However, within hours of taking office, President Trump imposed a 10% global tariff under Section 122 of the Trade Act of 1974 – later increased to 15% – meaning import costs for consumers remain high. The Tax Foundation estimates that remaining tariffs will cost households between $400 and $1,000 in 2026, depending on how long Section 122 duties last (7).
When Pollock called FedEx to dispute the charges, the company told him he could challenge the assessment through an online process — but warned that if the charges were found to be correct, he would pay a dispute fee of $90 to $150.
“I’m scared to run this race,” Polk told 9NEWS’ Steiger.
Even in the worst case, Pollock’s overpayment is about $25. Risking $90 to $150 to recover doesn’t make financial sense, so companies are under less pressure to get that valuation right.
Read more: The average net worth of Americans is a staggering $620,654. But it makes almost no sense. Here’s the number that counts (and how to make it skyrocket)
On February 20, 2026, the Supreme Court ruled that Education Resources, Inc. v. Trump ruled 6-3 that President Trump exceeded his authority by imposing tariffs under the International Emergency Economic Authorization Act (8). Three days later, FedEx became one of the first major US companies to demand a full refund of every dollar paid in IEEPA tariffs (9). The company has publicly stated that it intends to pass on any refunds to shippers and consumers, although it has not made a legally binding commitment to do so (9).
Customers don’t wait. In addition to the Miami class-action suit, a customs broker in South Carolina filed multiple lawsuits in federal courts in three states against both FedEx and UPS, for all consumers who paid IEEPA tariffs through those carriers (10).
The government has collected an estimated $175 billion or more in IEEPA tariffs that the Supreme Court has now ruled unconstitutional (10). How and when consumers will see that money back remains an open question—FedEx’s own website currently says it cannot “resolve IEEPA tariffs or any refund processing disputes” until it receives direction from regulators or the courts (11).
The days of cheap, hassle-free international shipping are over. Here’s how to minimize the surprise.
See where the seller is located. Many online marketplaces do not make it clear that the product is being shipped from abroad. Check seller details and shipping origin before purchasing.
Check for “Product Paid” shipping. Some sellers absorb import costs and include them in the listed price. If the shipping terms say “delivered at location” or don’t specify, you’re likely on the hook for duties upon arrival.
Understand the basics of tariffs. Every imported package is now subject to duties regardless of value. Most goods face a basic tariff of at least 10%. Auto parts are 25% higher under Section 232.
Check your customs receipt carefully. Compare tariff codes and prices with what you actually bought. If something seems far-fetched – like charging a heavy vehicle tariff on a passenger car hub cap – document everything and dispute it.
Understand the cost of conflict. Carriers often charge a fee to formally contest a customs assessment. Ask about the fee in advance and weigh it against the potential savings.
Keep everything. Save the original listing, order confirmation, shipping receipt and any job receipts. If you have already paid IEEPA-related fees, these records may be important if a refund process is eventually instituted.
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We rely only on verified sources and reliable third-party reporting. For details, see our Institutional Ethics and Guidelines.
9NEWS Denver (1); Congressional Research Service (2); NBC News (3); Modern Retail (4); ClassAction.org (5); NPR (6); Tax Foundation (7, 8); CNBC (9); Mall radius (10); FedEx (11)
This article provides information only and should not be used as advice. It is provided without warranty of any kind.
