"At Fleece & Harmony, a woolen mill and yarn shop in bucolic Belfast, Prince Edward Island, in Canada, owner Kim Doherty used to be able to send yarn skeins to U.S. customers across the border with little fanfare. The yarn orders usually met an import tax exemption for packages valued at under $800, meaning it could be imported tariff-free and avoid the customs process."
"The bill for a $21 ball of yarn now includes $12 to $15 in brokerage fees that her shipper UPS charges, plus state taxes and a 6.5% tariff, all of which almost doubles her costs. "We had orders that have reached the customers and they're in shock about the fact that they have to pay," she said. "And it's amazing how many people really didn't know what the impact was going to be.""
Kim Doherty previously sent yarn skeins from her Fleece & Harmony mill in Belfast, Prince Edward Island, to U.S. customers under an import tax exemption for packages valued below $800, avoiding tariffs and customs. The Trump administration eliminated the de minimis exemption as of Aug. 29, creating new costs. A $21 ball of yarn can now incur $12–$15 in UPS brokerage fees, state taxes, and a 6.5% tariff, nearly doubling costs. Many U.S. shoppers encountered unexpected duties that deterred purchases. Some foreign sellers report steep declines in U.S. sales, are absorbing duties themselves, and are shifting focus to domestic customers.
Read at Fortune
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