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Wholesale attributed to higher prices versus higher purchase volume. The bottom line, more than six months after the initial changes to US tariffs there is still little clarity for brands and retailers on when consumers might reach their breaking point.
There is one new factor that brands and retailers must consider as they plan for the fourth quarter and next year. On August 29, the de minimis rule that exempted goods entering the US valued at under $ 800 from tariffs was suspended. Shipments that qualified for de minimis status comprised 92 percent of all freight entering the US, according to government data. There has been much discussion about how the end of the de minimis rule would cripple lowcost retailers like Shein and Temu. But the reality is all types and sizes of retailers are being impacted. They are also just starting to feel and understand how this will affect their business. The Universal Postal Union reports that since the end of the de minimis exemption, 88 international postal operators have ceased some if not all shipments to the US. There are also reports that shippers like FedEx and United Parcel Service are issuing invoices to consumers for tariffs they may not have been aware they would be required to pay when they placed their orders.
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