Trump abruptly axes obscure trade law — and it could cost consumers $10.9B. How to adjust to this new reality

Core Points - The abrupt end of the "de minimis" exemption has caused panic in the retail sector, allowing goods under $800 to enter the U.S. with minimal oversight [1][2] - Retailers are scrambling to adjust their earnings projections due to the sudden change in trade law [3] Impact on Retailers - Retail giant Tapestry, which owns brands like Kate Spade and Coach, anticipates a $160 million hit to profits as nearly 15% of its sales were previously covered under the de minimis exemption, now subject to a 30% tariff [4] - Shares of Tapestry fell nearly 16% following the announcement of the profit impact [4] Broader Implications - The White House argues that the end of the exemption will address issues related to cheap and potentially unsafe goods entering the U.S. tariff-free, and claims it has been exploited by drug smugglers [5] - The executive order may disrupt supply chains across various industries that depend on importing inexpensive goods from overseas [6]