Fri, 29 Aug 2025

Fri, 29 Aug 2025 How US shoppers will be hit as tariff exemption ends

Lower-price goods will no longer be duty-free, in a move that will affect millions of shipments.
Impact on Small Businesses
* The elimination of duty-free de minimis treatment will make it more expensive for small businesses to send goods from abroad to the US.
* Firms like Zou Xou, which specializes in artisan-made shoes, may struggle to factor in added costs and explain changes to consumers.
* British retailer Wool Warehouse has paused orders from the US due to uncertainty over shipment processes and fees. Impact on Consumers
* Prices of goods ordered from overseas are likely to rise, making it more expensive for consumers to buy products from abroad.
* US-based retailers may gain if prices of goods ordered from overseas rise, as consumers may turn to domestic stores like Walmart or Target instead.
* However, Chinese companies like Shein and Temu have set up distribution centers in the US to ease some of the cost of tariffs. Impact on International Trade
* The elimination of duty-free de minimis treatment will make it harder for small businesses to launch e-commerce sites, as they will need to factor in costly audits needed to clear US customs.
* China is "months ahead" in figuring out the paperwork compared to firms in other countries, which may give Chinese companies an advantage. Reactions from Businesses and Experts
* Some American businesses welcomed the decision, arguing it would level the playing field.
* Trade expert Deborah Elms said that small firms will feel the strain from costly audits needed to clear US customs.
* Andrew Smith, managing director of British retailer Wool Warehouse, hopes to resume orders to the US within two weeks but expects prices to rise by up to 50%. Overall, the elimination of duty-free de minimis treatment is expected to have a significant impact on international trade, particularly on small businesses and consumers.
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