$800 De Minimis Import Tax Exemption Set To End Friday

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Jan 30, 2020
2,770
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New Jersey
I have to wonder if the smartest men in the room at STG are sorry they closed the Sutliff plant in Richmond, VA right about now. It would have been smart to keep a domestic US manufacturer open, it seems. I hope Leonard is still around to chime in…
Eh, but it sounded like Sutliff couldn’t produce a lot of things or quantities STG needs. With the few lines they kept, an entire plant doesn’t warrant that.
 

Mike N

Lifer
Aug 3, 2023
1,098
7,178
Northern Panhandle of West Virginia
Eh, but it sounded like Sutliff couldn’t produce a lot of things or quantities STG needs. With the few lines they kept, an entire plant doesn’t warrant that.
We will see if having even a small, 40-employee US plant open would have been a wise move right about now. Why in the world would you close a profitable US plant which at least kept your import/export options open rather than put all your eggs in one basket in Denmark?
 

Mike N

Lifer
Aug 3, 2023
1,098
7,178
Northern Panhandle of West Virginia
They still have their own import arm in the US with STG Lane. The Sutliff import capability was redundant.
All STG tobacco manufacturing was moved to Denmark. There is reason why hundreds of companies from Apple on down are building out US new manufacturing plants in the US. Having an “import arm” does not avoid the new Trump import tariffs. Closing the Richmond factory looks like a foolish move now to at least have kept their options open in the future.
 

Briar Lee

Lifer
Sep 4, 2021
6,958
23,516
Humansville Missouri
The United States stands as a major global exporter, ranking second only to China. Due in part to the United States-Mexico-Canada Agreement (USMCA), Canada and Mexico were the top single-country export partners of the United States in 2024. Beyond these bilateral trade relationships, the U.S. also exported over 369 billion U.S. dollars worth of goods to the European Union during the same year. The balance of trade, which quantifies the value of imports and exports within a country's economy, is determined by subtracting the total value of imports from the total value of exports. U.S. exports represent approximately ten percent of its GDP, which amounted to about 3.05 trillion U.S. dollars in 2023.

——


What was the decline in USA GDP during 2007-9 Great Recession?

——



The U.S. experienced significant economic declines during the 2007-2009 Great Recession, including a 4.3% drop in real Gross Domestic Product (GDP), a jump in the unemployment rate to a peak of 10 percent, and a roughly 30% average fall in home prices. The stock market also saw a 57% decline in the S&P 500 index, and the nation's overall household net worth dropped considerably. These declines were triggered by a housing market downturn and led to the worst economic period since the 1930s.

——

When Senators Smoot and Hawley proposed raising tariffs in 1930 the world thought there would be no Great Depression. In April of 1930 the stock market had rebounded to 1928 levels. Herbert Hoover believed Congress and not the President should determine and set tariffs and stayed above the fray. Smoot Hawley passed by only two votes. Over a thousand economists begged Hoover to veto the tariffs.

Agriculture had been in recession for several years. There was no crop that could be planted that was profitable. Initially the tariffs were to protect agriculture but other industries piled on.

The predictable result was a dramatic decline in trade, not just in America but all around the world.

Hoover lobbied for forgiveness of German obligations of the Treaty of Versailles, and issued the Hoover Moratorium in 1931.


We all know how that story ended in utter catastrophe.

Hoover lived until 1964.

He was a constant critic of FDR and joined America First and personally met with Hitler and Goring in 1938 and condemned FDR as a war monger and blamed Britain and France for not accommodating Germany.

IMG_2519.jpeg

After Pearl Harbor, like Henry Ford and Charles Lindbergh he patriotically supported the war effort.

Smoot Hawley has no defenders.

But the apologists for Smoot Hawley point out that USA exports in 1929 were less than 5% of our GDP, and since GDP fell by about 30% by 1932 it was overrated as a factor in the disaster.

—-


In 1929, U.S. exports were approximately 4.5% of the national GDP. This is calculated by dividing the $5.6 billion in exports by the 1929 GDP of $126.1 billion.

Here's the calculation:

  1. Exports in 1929: $5.6 billion
  2. GDP in 1929: $126.1 billion
  3. Calculation: ($5.6 billion / $126.1 billion) * 100% = 4.5%
——

To illustrate better what 3 trillion in USA exports compares with the rest of the world, see this chart:

IMG_2520.jpeg
 
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Briar Lee

Lifer
Sep 4, 2021
6,958
23,516
Humansville Missouri
You seem to be losing your thread of thought man!



The De Minimus exemption is a mere 15% of the value of USA imports.

America may save most of 68 billion by not buying little packages of imports at all.

But how much of the three trillion and some dollars in our own exports will we lose, in this trade war?

Our tariff rates are at Smoot Hawley levels.

I wonder how many members of our present government know about Smoot Hawley, Appeasement, America First, and why tariffs fell out of favor for 95 years?

I didn’t know, but Hoover has his own library—-

——

Hoover Museum closed for museum renovation, to reopen Summer 2026​

The Herbert Hoover Presidential Library and Museum is closed to museum visitors, with plans to reopen in Summer 2026. The Research Room will remain open by appointment, and educational programming will continue during the renovation. For more information, click here.
The Herbert Hoover National Historic Site remains open during this time. Please begin your experience by first reviewing the information available at www.nps.gov/heho for up-to-date information about the site and your visit.


——

The man was honorable and well intentioned, and has no personal scandals of any note, other than those unfortunate photos of him and Hitler and Goring.
 
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Terry Lennox

Part of the Furniture Now
Aug 11, 2021
686
3,374
Southern California
Then you have to add in the new tariffs...

Excerpt is from Sec 3:

(c) A specific duty shall be assessed on each package containing goods entered for consumption, based on the effective IEEPA tariff rate applicable to the country of origin of the product as follows:

(i) Countries with an effective IEEPA tariff rate of less than 16 percent: $80 per item;

(ii) Countries with an effective IEEPA tariff rate between 16 and 25 percent (inclusive): $160 per item; and

(iii) Countries with an effective IEEPA rate above 25 percent: $200 per item.



Ah, yes the reciprocal rates. Have to add these. Thank you.
 
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sablebrush52

The Bard Of Barlings
Jun 15, 2013
22,960
58,324
Southern Oregon
jrs457.wixsite.com
The De Minimus exemption is a mere 15% of the value of USA imports.

America may save most of 68 billion by not buying little packages of imports at all.

But how much of the three trillion and some dollars in our own exports will we lose, in this trade war?

Our tariff rates are at Smoot Hawley levels.

I wonder how many members of our present government know about Smoot Hawley, Appeasement, America First, and why tariffs fell out of favor for 95 years?

I didn’t know, but Hoover has his own library—-

——

Hoover Museum closed for museum renovation, to reopen Summer 2026​

The Herbert Hoover Presidential Library and Museum is closed to museum visitors, with plans to reopen in Summer 2026. The Research Room will remain open by appointment, and educational programming will continue during the renovation. For more information, click here.
The Herbert Hoover National Historic Site remains open during this time. Please begin your experience by first reviewing the information available at www.nps.gov/heho for up-to-date information about the site and your visit.


——

The man was honorable and well intentioned, and has no personal scandals of any note, other than those unfortunate photos of him and Hitler and Goring.
I worked on a number of commercials with one of Herbert Hoover’s grandsons, Richard Hoover, who was a commercial director and one of the nicest guys I ever met.
Knew what he was doing, so no histrionics, just quiet expertise.
 

Scottmi

Lifer
Oct 15, 2022
5,210
80,566
Orcas, WA
Except that the powdered steel used for making high quality blades is made in Sweden.
Every high end American knife maker is getting screwed rude by this and will have to double their prices.
hmm.. steel from sweden is currently subject to a 25% tariff, with discussions aiming for a max of 10% tariff agreement. Is that enough to 'double' prices? And if they previously purchased more than $800 worth per order, they were already subject to the tariffs..
 

AirOne

Starting to Get Obsessed
Mar 6, 2024
244
665
Paris, France
hmm.. steel from sweden is currently subject to a 25% tariff, with discussions aiming for a max of 10% tariff agreement. Is that enough to 'double' prices? And if they previously purchased more than $800 worth per order, they were already subject to the tariffs..
25%? Not 50%?
 
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Scottmi

Lifer
Oct 15, 2022
5,210
80,566
Orcas, WA
25%? Not 50%?
25% according to the internet. Furthermore, it has been 25% on powdered steel since 2018:

Prior to 2024, the tariff on powdered steel imported into the United States was generally 25%, imposed under Section 232 tariffs which were first implemented in March 2018 for most steel products from nearly all countries, including Sweden.

Details
The Section 232 tariffs, set at 25%, covered a broad range of steel articles, including various forms of steel powders depending on their Harmonized Tariff Schedule (HTS) classification.

There were some period-specific and product-specific exemptions for specialty steel and for countries with tariff-rate quota agreements, but for most Swedish powdered steel exports, the typical rate was 25%, unless a specific product exclusion was granted.

The tariff rate and its application (including specialty product exemptions) remained largely unchanged from 2018 through the end of 2023 for Swedish steel, with additional country exemptions and product exclusions phased out by early 2025.

Thus, the standard import tariff for powdered steel from Sweden before 2024 was 25% for most categories, as part of the United States' ongoing Section 232 steel tariffs.

The tariff situation between the United States and Sweden is currently tense, with most Swedish exports to the US now subject to new tariffs as part of broader US–EU trade measures announced in mid-2025.


Current US Tariffs on Swedish Goods​

  • As of August 2025, the United States imposes a 15% general tariff on most goods imported from the European Union, including Sweden, as a result of a new US–EU trade agreement.business-sweden+1
  • Specific sectors such as steel, aluminum, and automobiles face higher tariffs (up to 25%), with possible further increases if no new agreements are reached soon.riksbank+1
  • Major Swedish exports impacted include cars, pharmaceuticals, machinery, and iron and steel products.cnbc+2

Changes to Low-Value Shipments​

  • The US removed the duty-free “De Minimis” exemption for imports valued under $800 from EU countries on August 29, 2025, meaning all EU shipments—regardless of value—are now subject to tariffs, duties, and customs declarations.verksamt+1
  • This specifically impacts Swedish e-commerce and international postal shipments, with postal authorities pausing some services to the US temporarily.verksamt

Economic Impact and Uncertainty​

  • Sweden’s finance minister has described 10% as the lowest likely tariff rate in current and future negotiations with the US, but there’s ongoing uncertainty about whether tariffs could be higher, such as 15% for general goods or 25% for vehicles and metals.reuters+1
  • The economic forecast for Sweden has been revised downward in part due to these tariffs, as US demand for Swedish products is expected to fall, and companies are hesitant to invest amid an uncertain trade environment.reuters+1
  • While the direct impact on Sweden’s GDP is expected to be limited, the broader uncertainty is negatively affecting exports and global supply chains.riksbank+1

Summary Table​

SectorPre-2025 TariffCurrent Tariff (Aug 2025)Notes
General Goods~0–5%15%Applies to most EU/Sweden exportsverksamt+1
Steel/Aluminum10–25%25%Higher for cars/steel; may increaseriksbank+1
Automobiles2.5%25%Major Swedish export impactedcnbc+1
E-commerceDe MinimisNo exemptionAll shipments taxed, including small parcelsverksamt+1

The present situation is marked by elevated US tariffs on Swedish (EU) goods, removal of low-value import exemptions, and heightened uncertainty for manufacturers and exporters in both countries.business-sweden+2

  1. The trade policy between the US and the EU - https://verksamt.se/en/news/trade-policy-between-us-and-eu
  2. https://www.reuters.com/markets/eur...0-us-tariffs-lowest-eu-can-expect-2025-07-15/
  3. What does the US-EU trade deal mean for Swedish companies? - https://www.business-sweden.com/insights/blogs/us-trade-policy-shifts/what-does-the-us-eu-trade-deal-mean-for-swedish-companies/
  4. https://www.riksbank.se/globalasset...-and-which-sectors-could-be-most-affected.pdf
  5. https://www.cnbc.com/2025/06/06/swe...om-trump-tariffs-and-theres-more-to-come.html
  6. https://www.riksbank.se/globalasset...ysis-in-monetary-policy-report-march-2025.pdf
  7. https://www.riksbank.se/globalasset...lysis-in-monetary-policy-report-june-2025.pdf
  8. https://www.nytimes.com/interactive/2025/07/28/business/economy/trump-tariff-tracker.html
  9. https://finance.yahoo.com/news/live...fs-coming-soon-could-reach-300-200619487.html
  10. https://oec.world/en/profile/bilateral-country/usa/partner/swe
  11. https://www.euronews.com/business/2...rough-in-sweden-as-tariff-talks-enter-day-two
 
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Briar Lee

Lifer
Sep 4, 2021
6,958
23,516
Humansville Missouri
I worked on a number of commercials with one of Herbert Hoover’s grandsons, Richard Hoover, who was a commercial director and one of the nicest guys I ever met.
Knew what he was doing, so no histrionics, just quiet expertise.

To this day, the School of Journalism at the University of Missouri Columbia has an arrangement to have students intern at The Index newspaper at Hermitage Missouri and now and again a young person discovers the works of Myrtle Cahow “Ma” Agee, and tracks me down as her last literary executor.

IMG_8746.jpegIMG_8748.jpeg

They are sure to ask, did she really hate that dad blasted old Roosevelt, or was that just satire?

And my reply is, the Roosevelt hating was most likely due to Kathy “Nanny” Jenkins who owned The Index and was the first female Superintendent of Schools of Hickory County and Ma Agee who was married to the wealthiest landowner in Hickory County and 1901 graduate of Weaubleau Christian College under Whitaker, both being descendants of Union cavalrymen and conspiring to carry on the noble work of the Prohibitionists and Suffragettes who hated drunken, worthless men who stayed drunk while their wives worked their farms and took in laundry and cleaned wealthy women’s homes and popped out a baby every year until they died young.

Otherwise why did Ma Agee and Nanny Jenkins both idolize Inex Mullholland?

IMG_2522.jpeg


And I’ll add of her seven grandchildren the five now living, I’m a lawyer, two are schoolteachers, one is the beautiful widow of a multimillionaire, and one is the proud mother of the President of a Teamsters Union of Kansas City Missouri.

And when we get together we always sing Ma Agee’s favorite song.

Deportees


Roosevelt’s greatest mistake was legalizing 3.2% beer, right out of the gate.

——
The Cullen–Harrison Act, named for its sponsors, Senator Pat Harrison and Representative Thomas H. Cullen, enacted by the United States Congress on March 21, 1933, and signed by President Franklin D. Roosevelt the following day, legalized the sale in the United States of beer with an alcohol content of 3.2% (by weight) and wine of similarly low alcohol content, thought to be too low to be intoxicating, effective April 7, 1933. Upon signing the legislation, Roosevelt made his famous remark, "I think this would be a good time for a beer."

—-

Nine months later and it would have been the will of the people, you know?

Xxxxx

On taking office, Hoover urged Americans to obey the Eighteenth Amendment and the Volstead Act, which had established Prohibition across the United States.[216] To make public policy recommendations regarding Prohibition, he created the Wickersham Commission.[217] Hoover had hoped that the commission's public report would buttress his stance in favor of Prohibition, but the report criticized the enforcement of the Volstead Act and noted the growing public opposition to Prohibition. After the Wickersham Report was published in 1931, Hoover rejected the advice of some of his closest allies and refused to endorse any revision of the Volstead Act or the Eighteenth Amendment, as he feared doing so would undermine his support among Prohibition advocates.[218] As public opinion increasingly turned against Prohibition, more and more people flouted the law, and a grassroots movement began working in earnest for Prohibition's repeal.[219] In January 1933, a constitutional amendment repealing the Eighteenth Amendment was approved by Congress and submitted to the states for ratification. By December 1933, it had been ratified by the requisite number of states to become the Twenty-first Amendment.[220]

Xxxx
 
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Briar Lee

Lifer
Sep 4, 2021
6,958
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Humansville Missouri
Lotta angst. Fun thread to review periodically. Thanks for the, mostly on point, observations and thoughts.

We are all just spectators to this.

The United States Constitution grants to the Congress these powers:
—-
Article I Section 8, clause 1


The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

——


The last time Congress tried using that power in 1930 it turned out to be an unmitigated, absolute, utter catastrophe.

There’s an old saying that success has many fathers but failure is always an orphan child.

I suppose we’ll know enough by November 2026 to see who claims all this or not.:)
——
Elections are scheduled to be held in the United States, in large part, on November 3, 2026. In this U.S. midterm election, which will occur during Republican President Donald Trump's non-consecutive second term, all 435 seats in the U.S. House of Representatives and 35 of the 100 seats in the U.S. Senate will be contested to determine the 120th United States Congress. Thirty-nine state and territorial U.S. gubernatorialelections, as well as numerous state and local elections, will also be contested.

—-

What is so wonderful about this Republic is our elections are constitutionally mandated to occur by our founding document, the United States Constitution.


If we the people aren’t happy with our Congress every two years from now until Judgement Day we get to elect an entire new House and a third of the Senate:

And we’ve had those Congressional elections every even number year since 1790, through boom times and bad times, even bloody wars.

Even in 1862 and 1864.

And in 1942 and 1944

They are as sure and certain to come as the calender

Battle Hymn of the Republic


And this prevents violence and civil war.

The only other alternative to free and fair elections.

My Little Armalite


If folks don’t like a trade war, they can walk to a ballot box and and end it, you know?
 

sablebrush52

The Bard Of Barlings
Jun 15, 2013
22,960
58,324
Southern Oregon
jrs457.wixsite.com
hmm.. steel from sweden is currently subject to a 25% tariff, with discussions aiming for a max of 10% tariff agreement. Is that enough to 'double' prices? And if they previously purchased more than $800 worth per order, they were already subject to the tariffs..
I’m just quoting what one well known maker of high end knives stated on his YouTube channel. That, and other tariff related costs that affect his business are affecting his planned expansion of his business.
 
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Dec 10, 2013
2,801
3,612
Nijmegen, the Netherlands
in the past, US buyers of pipes and other goods from retailers in Europe, China and other foreign countries paid no import tariffs if the value was less than $800 pursuant to what is known as the de minimis exception. There was little or no paperwork to complete. That is about to change on Friday according to the New York Times and other media outlets. Already international shippers like DHL have suspended shipping such products to the US in a wait-and-see approach on how the new tariffs on these smaller orders will be collected and how much paperwork will be required.

Under the new rules, letters and personal gifts worth less than $100 will still be duty-free.

”The White House said ending the de minimis exemption would help combat “escalating deceptive shipping practices, illegal material, and duty circumvention,” claiming some shippers had “abused” the exemption to send illicit drugs such as fentanyl into the U.S.”

Link to NBC News article:
Not only DHL; Dutch PostNL currently ships not one single package to the U.S. !
 
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