News: 0178527194

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Trump Suspends Trade Loophole For Cheap Online Retailers Globally (arstechnica.com)

(Thursday July 31, 2025 @05:20PM (BeauHD) from the cease-and-desist dept.)


An anonymous reader quotes a report from Ars Technica:

> E-commerce giants everywhere felt the sting Wednesday when President Donald Trump [1]announced that the US will be " [2]suspending duty-free de minimis treatment for low-value shipments " worth $800 or less from anywhere in the world. Americans will likely soon feel the crunch, with one [3]recent study estimating that the cost of eliminating the trade loophole overall to US consumers could fall between $10.9 billion and $13 billion while "disproportionately" hurting "lower-income and minority consumers" who buy a higher percentage of cheap imports.

>

> Price hikes will likely come this fall, as the trade loophole will be closed starting on August 29, with Amazon emerging as perhaps the biggest question mark for US consumers wondering how hard their wallets may be hit by the major trade policy change ahead of the holiday shopping season.

In February, Trump [4]temporarily ended the de minimis exemption for [5]all imports from China , prompting China-based retailers Temu and Shein to raise their prices.



[1] https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-is-protecting-the-united-states-national-security-and-economy-by-suspending-the-de-minimis-exemption-for-commercial-shipments-globally/

[2] https://arstechnica.com/tech-policy/2025/07/trump-suspends-trade-loophole-for-cheap-online-retailers-globally/

[3] https://www.nber.org/papers/w32607

[4] https://yro.slashdot.org/story/25/02/05/055207/usps-halts-all-packages-from-china-sending-the-ecommerce-industry-into-chaos

[5] https://news.slashdot.org/story/25/05/02/2121218/temu-to-stop-selling-goods-from-china-directly-to-us-customers



Paperwork nightmare (Score:3)

by mspohr ( 589790 )

The tax will be one expense but the customs clearance and paperwork will be the largest problem.

If I buy a cheap gadget (say $20) from China, it currently sails through customs quickly with no added cost.

When the de minimis exception is eliminated, it will raise the price by whatever the tax is plus all of the paperwork by the seller and customs to process the few dollars of tariff due.

I guess that's the point... make it difficult to buy stuff from abroad.

MAGA!

Re: (Score:2)

by fahrbot-bot ( 874524 )

> I guess that's the point... make it difficult to buy stuff from abroad. MAGA!

Those things probably won't ever be made in the U.S. and if they are, it won't be soon and they won't be nearly as inexpensive.

The point is that Trump is using tariffs as a cudgel to make handshake deals he can boast about. At the moment, most (none?) of them are legally binding and/or are worded as aspirational pledges over many years. The EU and Japan even disagreed with Trump about their "deals" before the handshake was done. Sure the Treasury is raising a TON of money, but it's *our* money (and th

Re: (Score:2)

by Roger W Moore ( 538166 )

> The point is that Trump is using tariffs as a cudgel to make handshake deals he can boast about. At the moment, most (none?) of them are legally binding

True, but I expect that most if not all of them will come into existence more or less as negotiated, even the awful (for the EU) US-EU trade deal. This is because all our economies are currently strongly connected to the US and it is better to sign even a bad trade deal temporarily to give us the time to disconnect them than it is to unplug overnight.

I expect in a few years time they will go away as those of us outside the US have integrated with each other more and and no longer so reliant on the US. S

Squeezing the middle class (Score:1, Troll)

by OrangeTide ( 124937 )

Last month I bought two guitars from Aliexpress and a bunch of pedals from Japan (effects bakery). I've got some gear to play with while the Mango Mussolini plays games with our economy, most likely resulting in a decades long crash of the US economy.

Speaking of games, I received "Trump: The Game" as a gift back in the early 90's. My friends and I played it maybe 4 or 5 times. Absolute trash, the only fun we had was ripping on how bad it was. Sadly, Trump was laughing all the way to the bank for putting his

It's about killing small R&D (Score:4, Interesting)

by bill_mcgonigle ( 4333 ) *

They yammer on about Temu but the hardest hit sector will be small R&D shops that get parts and components as the need comes up and now they'll have 2-3 week delays on every order at Customs.

I've seen stuff disappear into the Customs black hole for six weeks and there's nothing you can do but reship and home the Chinese Roulette favors you.

It would be great if Adafruit and Sparkfun were 50x their size but that's not reality and manufacturing was driven out on purpose. It can't return for a decade even if a project were started today.

Watch: the media will say small businesses are complaining about the 15% to try to fool everybody. In prototyping almost nobody cares if an SoC is $10 or $11.50.

Trump's Corporate donors will be just fine and face fewer upstart competitors so it is working as intended.

Re: (Score:2)

by stabiesoft ( 733417 )

The big one for DIY'ers I think is going to be JLPCB. As you say, I've not cared about the tariff digikey has tacked onto orders in the past year or so. Adding 15% to a couple bucks doesn't move the needle for DIY. And De minimis has never been a factor for digikey I don't think. They order quantities way above 800 dollars.

Re: (Score:2)

by ArchieBunker ( 132337 )

You haven’t really been hit yet. An OPA549 is $21 with an extra $7 on tariffs. That will absolutely cut into people’s bottom lines.

Re: (Score:2)

by aaarrrgggh ( 9205 )

Yeah, losing de minimus kills a number of little DIY electronics projects for me. It just is not worth the pain. Make American Stupid Again.

Re: (Score:1)

by nonBORG ( 5254161 )

Try Digikey www.digikey.com

Re: (Score:2)

by MikeDataLink ( 536925 )

As far as I know DigiKey nor Mouser offer custom PCB manufacturing.

Re: (Score:2)

by dalosla ( 2568583 )

I haven't tried it, but DigiKey does: [1]https://www.digikey.com/en/pcb... [digikey.com]

[1] https://www.digikey.com/en/pcb-builder/

Killing...or Protecting? (Score:2)

by Roger W Moore ( 538166 )

There was an interesting video related to this on the [1]Smarter Everyday [youtube.com] Youtube channel about trying to make something in the US. One of the problems a US innovator found manufacturing his idea in China was that once the manufacturer had run of the parts he needed, they then ran off more parts from themselves, added it together with cheap, shoddy components and then undercut the original innovator on price selling crap versions of the original patented idea online.

If the effect of removing this exception

[1] https://www.youtube.com/watch?v=3ZTGwcHQfLY

This is it (Score:1)

by locater16 ( 2326718 )

This is the thing that causes Trump's downfall. In the US you can lock up as many people as you want, ignore the law all you want, threaten and cajole anyone you want, every President has done. But you mess with people's cheap shit and they'll come for your head.

Re: (Score:2)

by SpinyNorman ( 33776 )

Perhaps, although evidentially his supporters are also plenty mad about Trump's Epstein cover-up.

I think this has been simmering for a long time - part of the whole Q-anon thing from Trump's first term, which he did nothing to shut down, was that the government was full of pedophiles, and it seems his supporters were expecting the Epstein files, which Trump promised to release, to contain the some of the names ... But of course when Trump realized how prominently he himself featured in the Epstein file (per

Re: (Score:1)

by Dru Nemeton ( 4964417 )

The MAGApublicans are a cult. Full Stop.

It won't matter what he does, they'll blame it on the Democrats (or anyone else), the MAGApublicans will continue to gulp down the "Orange Dick" flavored Kool-Aid, and nothing will change.

I mean we are (and have been) staring right at Trump all over the Epstein files! Trump just admitted that J.E. "took" an under-aged girl he was employing (who later took her own life), and the legacy media (and the public at large) doesn't even blink.

If Child Sexual Assault

Don't worry ... (Score:2)

by fahrbot-bot ( 874524 )

> the cost of eliminating the trade loophole overall to US consumers could fall between $10.9 billion and $13 billion

Trump, his Secretary of Commerce Howard Lutnick and Secretary of the Treasury Scott Bessent have repeatedly assured us that, like all the tariffs, the cost will be paid by the foreign companies and countries. /s

(Trump graduated from Wharton and Lutnick and Bessent are both rich Wall Street wonks; they all actually know better.)

Re: (Score:2)

by ArchieBunker ( 132337 )

Trump threatened to sue the school if they released his grades.

Trump's Biggest Scam (Score:2, Troll)

by Puls4r ( 724907 )

At this point, you are an absolute idiot if you don't realize that Trump gave high earners an enormous tax break and is placing the burden of that on the lowest paid class in our society in the form of tariffs. Even those tariffs will not fully pay for the insane debt he has summarily created, but our future generations certainly will be. DOGE was a joke, and the savings they generated amounted to nothing. Especially after all the litigation and 'oops have your jobs back' that ended up after they realize

Re: (Score:1)

by Dru Nemeton ( 4964417 )

They are manufacturing scarcity within the richest country in the world. If you're scared of losing your job that doesn't really feed your family, because everything that you could afford just got way more expensive, and the bills are piling up, you're too far gone to even remotely think about fighting back. Therefore you hope that the people you voted for will do so for you, and we're seeing in real time how that's playing out.

Finally (Score:2, Troll)

by SoCalChris ( 573049 )

So now egg prices will come down? And thankfully I'm on a few medications, I heard I'm going to start getting paid for buying those too.

Anyone who voted for, or supports this clown is an idiot.

Stop china flooding the market with cheap rubbish (Score:2, Troll)

by caseih ( 160668 )

Never mind that it's American consumers who are demanding this. With Trump it's all about blaming others for his/America's problems. He never takes responsibility. Ever. Unless it's something others praise and then he's quick to tell us all his opinion of himself.

As someone who is self-deprecating and embarrassed by any sort of praise, my mind is boggled by his behavior, and how many people are cheering him on. Perhaps a solid third of the population is mentally ill? Probably, no matter what team you ch

Well MAGA (Score:1)

by ArchieBunker ( 132337 )

How are you enjoying your tax increase?

The internet is now filled with Republican voters (Score:3, Insightful)

by rsilvergun ( 571051 )

Posting about how their businesses are basically finished. There's a Reddit forum dedicated to them called leopards eating faces and it's just one after another.

There's also a healthy mix of people posting about how in two years or so they're going to be dead because they are losing access to Medicaid.

I can't help but want to say, have the day you voted for. Every one of these bastards has learned nothing and if they happen to still be alive in 4 years will be voting for Trump again in the primary and the general election.

Oh and so far we have lost 30 billion dollars in tourist revenue because people are afraid to come to America because they might be thrown into a El Salvador gulag. Which has happened two or three times now to tourists.

I mean is there anyone here on this forum who will defend Donald Trump or their vote for him? Anyone? Bueller?

Re: (Score:2)

by test321 ( 8891681 )

> I mean is there anyone here on this forum who will defend Donald Trump

Not that I enjoy defending him, but headlines read: "Forget TACO. Trump is Winning His Trade War" (paywalled) [1]https://www.wsj.com/economy/tr... [wsj.com]

[1] https://www.wsj.com/economy/trade/forget-taco-trump-is-winning-his-trade-war-8af6f777

Re: (Score:2)

by ArchieBunker ( 132337 )

It’s very difficult to do satire anymore.

Re: (Score:2)

by Rinnon ( 1474161 )

> Trump has high approval ratings and is doing great.

Trump's approval rating is currently the lowest it has been this term, at 40%, based on the latest Reuters/Ipsos poll conducted July 15 - 16.

same in the EU (Score:3)

by Petr Blazek ( 8018844 )

before barking at Trump, note that in the EU, the de minimis threshold is zero for VAT and a mere 150 EUR for customs duty. (And discussions are underway about the elimination of the latter as well).

Business opportunities (Score:2)

by nospam007 ( 722110 ) *

For border-near people.

Order it poste restante to Canada and smuggle it over.

There's coffee in that nebula!
-- Capt. Kathryn Janeway, Star Trek: Voyager, "The Cloud"