undefined | Better HN

0 pointssleepyguy6mo ago0 comments

No, because I like to order items from Canada and the EU that will now incur an enormous duty. A t-shirt from Canada or Germany will incur additional fees of $50 -$250 USD, depending on where it is cleared.

There is the law of unintended consequences. Other countries will now make American small business products much more expensive to export. Why would they give a De Minimis to these small businesses when the USA doesn't reciprocate?

You're only thinking about China and not the rest of the World. US small businesses buy things (under $800) from countries like Canada and the EU, and were able to do so because of De Minimus. Canadians could buy things from US small businesses without worrying about duties as long as it was under $500.

Now even the smallest item, even a gift from abroad worth $20, will incur a duty of $50-$250 plus administrative fees from the carrier.

0 comments

bgnn6mo ago

I think this is exactly the intended consequence. This is a protectionist economic policy, and its consequences will be reduced imports and exports.

US is the biggest market for everyone, because they have the sweet sweet dollars and that dollar is the global reserve currency. The government is fighting with that to be honest, and they aren't only hostile towards China, but to the whole world. EU amd Canada are actually at the top with China.

AnonC6mo ago

This (targeted deminimis removal for China alone) is a difficult problem to solve reliably and complex. As seen with Nvidia chips or other products with export controls, in this case sellers will find a way to buy from China and route it through other countries to benefit from the exemption. In the end, sales by China may not be dented as much as one may believe it to be.

I understand your point that removing it for all is a blunt instrument and causes different problems and harms. Hopefully some policy adjustments are made with some trade offs.

ReptileMan6mo ago

Usually taxes are percentage of the value of the import. Where do you get those 250$?

> Other countries will now make American small business products much more expensive to export.

They already are/were. From EU it never made sense to buy anything from small US business - with the absurd shipping costs and VAT.

sleepyguyOP6mo ago

>Usually taxes are percentage of the value of the import. Where do you get those 250$

If the sending country doesn't collect customs duties for the US, then the US will place a flat fee of $250 on the item regardless of its value.

>From EU it never made sense to buy anything from small US business, with the absurd shipping costs and VAT.

Perhaps in your case, but some products are specialized or of much higher quality than can be found in the USA.

sigwinch6mo ago

I read $80-$200.

j / k navigate · click thread line to collapse