Tyler Schipper, economist and associate professor at the College of Arts and Sciences at the University of St. Thomas, spoke to the Minnesota Star Tribune about the change in tariff policy due to an executive order that eliminated the long-standing “de minimis” exemption of $800.
From the story:
A tomato clock from Canada, K-pop albums from South Korea and Premier League soccer merchandise shipped through China all share something in common: Their Minnesota buyers are unexpectedly paying hundreds of dollars in tariffs.
On Aug. 29, President Donald Trump altered his tariffs policy by removing an import exemption on orders under $800.The elimination of the “de minimis” threshold on international shipments had been a shield for most consumers and small businesses. ...
Tyler Schipper, an associate professor of economics at the University of St. Thomas, said the ultimate consequence is clear.
“Households still end up being the overall losers in this,” he said. ...
The exemption fueled the rise of ultra-discount online retail giants like Temu and Shein, which built entire business models on shipping low-cost items directly to American consumers. It also gave smaller global retailers, like overseas Etsy sellers, a foothold in the U.S. market – a “competitive advantage,” Schipper said.
