Trump just announced he is killing the duty-free de minimus rule for shipments < $800.
https://arstechnica.com/tech-policy/2025/07/trump-suspends-trade-loophole-for-cheap-online-retailers-globally/
He killed this in April for China, now applying that to the entire world.
For individuals, it means that more purchasers will have to go through big retailers (Amazon) as the incentive to sell directly to individuals is greatly lessened.
FYI, the estimated annual budget cost of the de minimus rule is around $10 Billion, so small potatoes by any measure.
But, of course, the price of goods will increase much more than that to consumers, as most goods will see at least one additional middle-man (for example, Amazon) and some will see new aggregators that sell on Amazon etc., so - two additional middle-men.
Most hurt:
Small businesses, who now will have to have all shipments go through the Customs morass. As opposed to, in effect, having packages air-freighted from the originating companies. Instead of getting that custom prototype electronics board in a few days, it will now take much longer, and a sincere prayer it doesn't get lost in Customs.
All in all, bad for consumers and bad for many small businesses. Good for middle-men, particularly Amazon.
I know that many here associate this rule with Temu etc. and cheap China ****, if so, I sincerely disagree.
https://arstechnica.com/tech-policy/2025/07/trump-suspends-trade-loophole-for-cheap-online-retailers-globally/
He killed this in April for China, now applying that to the entire world.
For individuals, it means that more purchasers will have to go through big retailers (Amazon) as the incentive to sell directly to individuals is greatly lessened.
FYI, the estimated annual budget cost of the de minimus rule is around $10 Billion, so small potatoes by any measure.
But, of course, the price of goods will increase much more than that to consumers, as most goods will see at least one additional middle-man (for example, Amazon) and some will see new aggregators that sell on Amazon etc., so - two additional middle-men.
Most hurt:
Small businesses, who now will have to have all shipments go through the Customs morass. As opposed to, in effect, having packages air-freighted from the originating companies. Instead of getting that custom prototype electronics board in a few days, it will now take much longer, and a sincere prayer it doesn't get lost in Customs.
All in all, bad for consumers and bad for many small businesses. Good for middle-men, particularly Amazon.
I know that many here associate this rule with Temu etc. and cheap China ****, if so, I sincerely disagree.