How Trump's closing of a tariff loophole cuuld cost US shoppers more

About this video

• Video Title: How Trump's closing of a tariff loophole could cost US shoppers more
• Channel: Yahoo Finance
• Speakers: Ally, Esther Fung
• Duration: 00:05:28

Overview

This video discusses the implications of the US government closing the "de minimis" exemption, which allowed packages valued under $800 to enter the US without import taxes. The change, implemented under Section 321 of the Tariff Act, is expected to lead to higher prices for consumers, potential surprise tariff bills, and a pause in shipments from some international carriers.

Key takeaways

• The "de minimis" exemption, allowing packages under $800 to enter the US tax-free, has been closed.
• This change could result in US shoppers facing price increases of 10% to over 50% on goods purchased online from abroad.
• Consumers might receive unexpected tariff bills at checkout or from carriers like FedEx, UPS, or DHL, potentially leading to package non-delivery if not paid.
• While e-commerce packages are affected, personal care packages from friends or family valued under $100 remain exempt.
• Some international carriers and businesses are pausing shipments to the US due to the complexity and cost, with hopes to resume by the busy shipping season in October.