Marketplace Morning Report Small packages, big changes
Aug 27, 2025
The termination of the $800 tariff exemption on small packages will ripple through consumers and postal services. This change raises concerns about supply chain issues and illegal activities. Meanwhile, Nvidia's significant quarterly results highlight its impact on the AI sector, especially for giants like Amazon and Microsoft. The podcast also scrutinizes the Federal Reserve's less independent stance and its potential effects on the U.S. dollar's value and overall economic trends.
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Small Parcels Lose Duty-Free Status
- The de minimis exemption for packages under $800 ends Friday, so small parcels will face import tariffs.
- This change could clog customs and disrupt supplies as shipments spike and some postal services pause deliveries.
Surge In Exempt Claims Drove Policy Shift
- Customs reported shipments claiming the exemption rose over 600% in ten years, motivating the policy change.
- The administration says abuses like drug and counterfeit product shipments prompted closing the loophole.
Fed Independence Affects The Dollar
- If the Fed becomes subject to presidential pressure, yields may fall and the dollar could weaken.
- Lower rates can spark inflation, which further reduces demand for the dollar from global investors.