Overseas purchases now pose a greater challenge
The de minimis exemption, which allowed individuals to bring items worth $800 or less into the United States without paying tariffs or completing customs paperwork, has been eliminated as of today. This change is expected to increase the price of imported goods and disrupt international shipping.
The elimination of the de minimis exemption was first implemented for China and Hong Kong earlier this year, resulting in a drop-off in transactions with some of the biggest sellers of Chinese goods. However, it appears that the impact on sellers like Shein has largely recovered.
The change is likely to result in higher prices for some items bought by American consumers. Sellers may factor in tariffs into the prices of goods, and there may be additional shipping costs due to increased work required by carriers. Small business owners abroad may have to decide whether to pass tariff costs onto American buyers or absorb them themselves.
The Trump administration justifies the change by stating that it prevents unfair trade and the smuggling of fentanyl. As a result, the price of express shipping, such as from DHL, FedEx, and UPS, has increased. Expensive bills from these express carriers have been reported as a result of the change in the de minimis exemption.
Moreover, the availability of shipping through the international postal network may be limited due to the change in the de minimis exemption. Shipping goods through the international postal network, such as Royal Mail to USPS, has become more expensive. The foreign post office now has to collect duties before sending packages and may have suspended shipping until they set up payment facilities.
The Trump administration has collected nearly $500 million in tariffs on goods from China and Hong Kong that would have been tariff-free before the exemption was eliminated. Despite this, the example of the elimination of the de minimis exemption for China and Hong Kong does not necessarily support the Trump administration's stated goals, as there has been a drop-off in transactions with sellers like Shein.
It is important to note that the search results do not provide any information about the name of the company that manufactures the stolen pants mentioned by the colleague in the article. The impact of the de minimis exemption elimination on the overall economy and consumer behaviour is still being assessed and will continue to unfold in the coming months.
