The removal of the tariff exemption for goods valued at $800 or less is starting to hurt. As one Florida business owner observed, it will put them out of business.
The end of the de minimis exemption is wreaking havoc on U.S. consumers, small businesses and major carriers.
www.nbcnews.com
The bills are sudden and jarring: $1,400 for a computer part from Germany, $620 for an aluminum case from Sweden and $1,041 for handbags from Spain.
Some U.S. shoppers say they are being hit with surprise charges from international shipping carriers as the exemption on import duties for items under $800 expires as a part of President Donald Trump’s tariff push.
That’s leading to some frustration and confusion as shoppers and shippers both try to navigate a new reality for anybody ordering goods from abroad.
“It’s maximum chaos,” said Nick Baker, co-lead of the trade and customs practice at Kroll, a firm that advises freight carriers.
Thomas Andrews, who runs a business in upstate New York restoring vintage computers from the 1980s and 1990s, said he was shocked to receive a tariff bill from UPS for approximately $1,400 on a part worth $750. He said he assumed there must have been a mistake.
“That’s extortion,” Andrews said…..
……..After receiving a tariff bill for $620 on a $300 aluminum computer case from Sweden, Robert Wang decided to turn the shipment away.
A software engineer in the San Francisco Bay Area, Wang said he placed his order Aug. 22 with Louqe, a high-end Swedish merchant. More than a week later, he received notice from UPS about the bill.
“Confusion transitioned into a late-night panic,” Wang said, as he frantically researched the situation. Eventually UPS confirmed he’d been charged the 200% tariff Trump has slapped on certain aluminum goods.
Wang said he tried to reach out to Louqe about the charge, but did not hear back. The company did not respond to a request for comment from NBC News.
Baker said many foreign businesses that rely on U.S. customers now face the dilemma of eating the tariff cost — assuming they are properly accounting for it in the first place — or passing it on to their customers, which could scare off business. Many merchants abroad have posted to social media to alert U.S. customers that they are suspending shipments there.
Some U.S. small businesses are also paying a price. A day after receiving a shipment from Spain for handbags he said were worth about $600, Herm Narciso said he and his wife, who run a brick-and-mortar shop in Dunedin, Florida, that resells goods from Europe, got a tariff invoice for $1,041.44 from DHL.
“We can’t understand how it’s possible to assess us with that level of tariffs,” Narciso said.
They said that they plan to file a dispute, but that the response could take two to four weeks. Narciso is worried their shop won’t survive the recent changes if they start getting similar bills going forward.
“This last quarter is probably going to tank us,” Narciso said. “The margins on this type of business are slim to begin with.”
He added: “It just doesn’t feel like the American way to me.”
