Trump suspends trade loophole for cheap online retailers globally
E-commerce giants everywhere felt the sting Wednesday when President Donald Trump announced that the US will be "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 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.