Why can it hurt the end of the “minimum” of consumers-especially those with low incomes

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The containers are loaded and unloaded at the Port Jersey container in New Jersey, on May 1, 2025.

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Trump administration Abandonment Economists and commercial experts said the “minimum” base, a step that is likely to raise the prices of consumers who buy inexpensive goods online and may lead to a short -term shortage of some elements.

“It is a tremendous change for the American consumer,” said Rathna Sharad, CEO of Floghcloud, a cross -border logistical company.

“A significant increase in prices”

De Minimis Enmerce Delination: Here's the influence on retailers

Sharad said that most shipments come from China, which represents about 60 % of the size.

President Donald Trump End the minimal de exemption China in May. He is now doing the same thing for the rest of the world.

Sharad said that the cheap elements that were purchased online and shipped to the doors of consumers will be slaughtered with duties, while they were previously applied to packages that exceed $ 800.

All shipments – including cosmetics from Korea, leather shoes from Italy, and kitchen knives from Japan – will be subject to additional fees and taxes, such as the customs tariff imposed by the Trump administration on most American commercial partners.

“For the consumer, it can be a significant increase in prices,” said Mary Le Legm.

“A commercial policy in support of the poor”

A person delivering the Amazon sorted the packages to be delivered, Manhattan, New York.

Lindsey Nicholson/UCG/Universal Images group on Getty Images

The increase in the actual prices of consumers depend on many factors such as The country’s tariff pricesEconomists said that the tasks of the United States put on goods and manufacturing materials, and how to modify companies.

Here is how the end of De Minimis will affect some of the specific consumer goods, according to A. Flavor:

  • The cost of $ 30 of slippers (light cotton and distinct cotton) from China is about $ 45, an increase of 51 %;
  • $ 37 of nutritional supplements (factory -based, performance component) of Canada will cost about $ 60, an increase of 60 %;
  • A $ 240 chef (with a wooden handle and a white steel) will cost about $ 298, an increase of 24 %.

Pablo Faggilbum, professor of economics at the University of California, Los Angeles, and Amy Khandloual, professor of economics at Yale University, writes that the minimum is a “commercial policy in support of the poor”.

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The end of the base will hurt the low -income families and minorities in an impartial way, which derives more than the financial benefit from exemption from duty more than the richer families research They were published in February.

“Most people (using minimal exemption) are the people who were living on a budget and are concerned about prices,” she said. “I think some people will buy less.”

Not only is consumers: Small companies will have to adapt to the new system, Jamil said.

She said it puts more pressure on it when the customs tariff already provokes its costs of goods and manufacturing materials such as steel and aluminum.

More transparency of imports

The Trump administration argues that canceling the minimum base You will limit Mixing trafficking, illegal drugs and weapons by bad actors.

The government currently does not have a small look at De-Minimis shipments due to their simplified customs clearance procedures, lawyers at Hogan Lovells books newly.

Economists said that collecting duties on more imports raises federal tax revenues.

The cancellation of the minimum will lead to our decline in global trade: The Henriches Corporation

However, strengthening the supervision of these charges creates a greater administrative burden and requires more workforce to check packages – all of which come at an additional cost of the federal government, the economy said.

It is unclear whether the additional tax revenues gathered by the federal government exceed the additional costs, Lily said. “I don’t think we will really know.”

A US customs and border protection spokesman was unable to make a comment on this story immediately.

Meanwhile, postal services in Australia, India, Japan, New Zealand, Switzerland, UK and Other European countries He recently said they were Hanging shipments to the United States Amid confusion about questions such as how to collect customs duties.

Economists said that although the commercial system will eventually adapt, there may be delay and higher prices in the short term.

Erney Tedishi, director of economics at the Yale University budget laboratory and former economists in the House of Economic Advisors in the House of Representatives during the Biden Administration, said.

“I will not say that this will have a significant impact on the macroeconomic economy on the United States,” Tedishi said. “However, for certain people, this will lead to a large amount of headache,” he added.



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