The companies making the most of the end of de minimis
President Donald Trump’s move to place big tariffs on small-dollar items ordered from abroad has caused headaches for some U.S. shoppers, not to mention the overseas merchants selling to them.
President Donald Trump’s move to place big tariffs on small-dollar items ordered from abroad has caused headaches for some U.S. shoppers, not to mention the overseas merchants selling to them.
But the change also has defenders who say it is needed to create a more level playing field for domestic industries. The adjustment has also sparked a gold rush for other U.S. companies designed to handle customs processing and product fulfillment.
Starting Aug. 29, Trump ended the exemption on duties for goods worth less than $800 — also known as de minimis items — making them newly subject to sizable tariffs. The exemption had opened the door in recent years to a wave of ultra-low-cost goods from foreign companies like Temu and Shein sold directly to U.S. consumers duty- and inspection-free.
“It seems very odd that we would let foreign-owned companies sell directly to American consumers without any limitations,” said Craig Fuller, founder and CEO of FreightWaves, a shipping industry consultancy. “It put our retailers on the back pedal.”
The de minimis exemption was first established in 1930 for goods worth $1 or less to ease processing burdens on U.S. customs officials. In 2016, Congress increased the de minimis limit to $800 in response to the growing e-commerce boom.
https://www.nbcnews.com/business/economy/companies-making-money-tariffs-de-minimis-ends-rcna230320
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