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On May 1, 2025, load and unload containers at the Port of Jersey Container Terminal in New Jersey.
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The Trump administration is scrapped Economists and trade experts say the “de minimis” rule on Friday could raise prices for consumers who buy cheap goods online, which could lead to a recent shortage of certain items.
“This is a huge change for American consumers,” said Rathna Sharad, CEO of FlowCloud, a cross-border logistics company.
“High price”
The De Minimis exemption allows our consumers to place $800 worth of goods without tariffs, tariffs and fees. This rule makes it cheaper for consumers who purchase products directly from international sellers.
Experts say the quantity of these low-value goods has swelled in the rise of e-commerce.
According to U.S. Customs and Border Protection Data data.
According to CBP data, the average shipping of De Minimis is about $48 in 2024.
Most of the goods come from China, accounting for about 60% of the quantity, Sarad said.
President Donald Trump Ended minimum exemption May China. He is doing the same for the rest of the world now.
Cheap items purchased online and shipped to consumers’ doorsteps will be paid, Sarad said, and they have previously applied for packages of more than $800.
All goods (including beauty products from South Korea, leather shoes from Italy, kitchen knives from Japan) will be subject to additional fees and taxes, such as tariffs imposed by the Trump administration on most U.S. trading partners.
“For consumers, this could be greatly improved.
“Poverty Trade Policy”
Amazon delivery staff sorts packages to be delivered, Manhattan, New York.
Lindsey Nicholson/UCG/Universal Images via Get Image Group
The actual price increase of consumers will depend on many factors Tariff rates for specific countriesEconomists say the U.S. responsibilities in commodities and manufacturing materials and how businesses adjust pricing.
This is how the end of De Minimis will affect certain consumer goods. FlavorCloud Analysis:
- The $30 slippers (lightweight, premium cotton) from China cost about $45, up 51%;
- The cost of $37 nutritional supplements (plant-based, performance-forming) in Canada is about $60, up 60%;
- The $240 chef’s knife in Japan (with wooden handles and white steel) is about $298, an increase of 24%.
De Minimis is a “poor trade policy,” wrote Pablo Fajgelbaum, an economics professor at UCLA and Amit Khandelwal, an economics professor at Yale University.
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The end of the rule would disproportionately harm low-income and minorities, which would have received a financial benefit from exemptions than the wealthy families. Research They were published in February.
“Most people (using a minimum waiver) are people who live on budgets and are worried about the price,” Lovely said. “I think some people will buy less.”
Lovely says it’s not just consumers: Small businesses must adapt to the new regime.
She said that when tariffs have raised the cost of manufacturing materials such as steel and aluminum, it puts more pressure on them.
More transparency from imports
Trump administration argues cancellation of minimum rules Will limit Bad actors traffic in forgery, illegal drugs and weapons.
The government currently has little insight into DeMinimis cargo due to the simplified tariff procedures for them. Write recent.
The responsibility to collect more imports also increases federal tax revenue, economists say.
However, oversight of these goods creates a greater administrative burden and requires more manpower to screen packages, all of which brings additional costs to the federal government.
Lovely said it is unclear whether the additional tax revenue collected by the federal government will exceed the additional fees. “I don’t think we really know.”
A U.S. Customs and Border Protection spokesperson was unable to immediately comment on this story.
Meanwhile, Australia, India, Japan, New Zealand, Switzerland, United Kingdom and Other European countries Recently said they would Suspend cargo to the United States Confusion over issues such as how customary tariffs are imposed.
Economists say that while the trade system will eventually adjust, there may be delays and higher prices in the near term.
Ernie Tedeschi, director of economics at Yale Budget Laboratory and former chief economist at the White House Economic Advisory Board, said the near-term impact could be the “unavailability” of some projects, especially as the year-end holiday approaches.
“I wouldn’t say that this will have a huge macroeconomic impact on the United States,” Tedsky said, adding: “That is, for some people, it will cause a big headache.”
