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PBS News Hour - Segments

What consumers can expect as de minimis exemption ends

PBS News Hour - Segments

PBS NewsHour

News, Daily News

4.11K Ratings

🗓️ 29 August 2025

⏱️ 6 minutes

🧾️ Download transcript

Summary

Americans are no longer able to import cheap foreign goods tariff-free. The Trump administration ended the de minimis exemption, which allowed packages valued under $800 to enter the U.S. with no import tax. Last year, there were nearly four million such packages a day. Amna Nawaz discussed the latest with Clark Packard. He is a trade expert at the libertarian Cato Institute. PBS News is supported by - https://www.pbs.org/newshour/about/funders. Hosted on Acast. See acast.com/privacy

Transcript

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0:00.0

A federal appeals court today ruled that President Trump has no legal right to impose sweeping tariffs on nearly every country in the world.

0:09.0

But the court is allowing the tariffs to remain in place until at least mid-October, giving the Trump administration time to appeal to the U.S. Supreme Court.

0:17.0

That comes as another piece of the President's Tariff's plan goes into effect.

0:21.6

Starting today, Americans are no longer able to import cheap foreign goods tariff-free, at least for now.

0:28.6

The Trump administration ended the so-called de minimis exemption, which allowed packages valued at less than $800 to enter the U.S. with no import tax.

0:38.3

Last year, there were nearly four million such packages a day, over $1.3 billion overall.

0:44.1

The end of that exemption for goods from China went into effect this spring.

0:48.0

Today, it was extended to the rest of the world.

0:50.8

For more on this, I spoke just before the court decision with Clark Packard.

0:54.6

He's a trade expert at the Libertarian Cato Institute. Clark, welcome to the show. Thanks

0:59.4

for joining us. Thanks for having me on. So most people may not have even known that they were

1:04.0

benefiting from this de minimis exemption, but now that it's gone, what is the impact? What

1:09.0

kinds of goods are impacted and what type of shoppers?

1:12.5

Yeah, that's a good question. Goods that arrive in the United States under the de minimis exemption

1:17.8

tend to be clothing, footwear, small electronics. So think about a phone charger, for example,

1:26.0

as well as durable goods. So a phone case might arrive in the U.S.

1:30.7

or something like leather, again, but it tends to be more on the footwear and apparel side.

1:38.8

And so what does that mean for the shopping experience? What changes? Everything is now subject

1:42.8

to tariff, so it costs more. Is there additional paperwork for customs? What changes? Everything is now subject to tariffs, so it costs more.

1:44.4

Is there additional paperwork for customs? What happens?

1:47.8

Both of those, certainly. Yeah, the products that now arrive that would have been duty-free

1:54.4

are now subject to the tariffs that have increased under the Trump administration, so prices

...

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