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346 points Kye | 5 comments | | HN request time: 0s | source
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bsimpson ◴[] No.45017749[source]
There was chatter about this in one of the NYC subreddits over the weekend.

Apparently ending the de minimus exemption is closing the grey market for e.g. sunscreen; places that used to sell Japanese sunscreens on American shelves no longer are.

There's a frustratingly long list of goods that the US decided to put requirements on in previous generations, and then stopped maintaining. Sunscreen is one; other countries have invented sunscreens that feel better on your skin than the old styles, but aren't yet approved in the US. Motorcycle helmets are another. You may have seen the MIPS system - the yellow slipliner that's become popular in bicycle helmets. Scientists have realized that rotational impact leads to concussions and similar brain damage, but prior helmets only protected against naive impacts. Europe now requires helmets to protect against rotational damage. The US requires that manufacturers self-assert that they meet a very old standard that ignores rotational impact. They do not recognize Europe's new standard.

Closing these de minimus exemptions is making it harder for discerning consumers to buy higher quality goods than are currently available in the US right now. Protectionists are going to see this as a win.

More background on helmet standards:

https://www.youtube.com/watch?v=0BUyp3HX8cY

https://www.youtube.com/watch?v=76yu124i3Bo

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ericmay ◴[] No.45018342[source]
> Closing these de minimus exemptions is making it harder for discerning consumers to buy higher quality goods than are currently available in the US right now.

Everything has a trade-off.

On the other hand, it also prevents companies from dumping artificially cheap and crappy goods (TEMU) on US markets and making it nearly impossible for others to compete.

Unsuspecting consumers buy a super cheap (subsidized) crap product on Amazon or Temu or Shien or wherever - probably a knock-off of an American product, have it shipped to the US, then it disintegrates after a couple of uses or stops working, and we wind up with pollution, additional landfill, and relentless consumerism that's harmful to the country all so we can help a certain country whose name starts with a C keep the lights on and keep factories running so that they don't see unemployment numbers tick up.

Legitimate businesses selling higher quality products where they exist will be able to figure it out. Or not. It's not a big deal if your sunscreen is slightly worse than the Korean version (which I use). Maybe it just hasn't been approved because they haven't done the work to apply because they can get around working with our government and making sure their product meets our safety standards because of the de minimus loophole?

There's also safety concerns, which I think the CBP did a good job of overviewing here: https://www.cbp.gov/frontline/buyer-beware-bad-actors-exploi... . Send drugs or guns or illegal animal products to the US, get caught, who cares you live in (not the US) so you can just spin up another sham company and do it again.

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phil21 ◴[] No.45023220[source]
The tradeoff here is “pay the middleman markup tax” for the most part.

Instead of getting cheap Chinese made clothing for $5, you now get to pay Walmart $17 for the same thing.

If we are going to outsource production in order to save on consumer goods costs, the consumer should be the one reaping the surplus - not capital. Properly informed buyers were quite capable of getting quality product out of China for a tenth of the cost of exactly the same thing stocked on major retailer shelves here.

While there are certainly abuses of the current system, it would be best to close those loopholes vs. just give a bunch of profits to giant companies for effectively doing nothing more than having scale and volume. If you’re lucky they may do some curation too.

Not everything was Temu or Shein. Plenty of smaller factories basically going direct to consumer in a win win sort of scenario. They get paid more, and the customer doesn’t pay any middlemen.

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ericmay ◴[] No.45026270[source]
> Instead of getting cheap Chinese made clothing for $5, you now get to pay Walmart $17 for the same thing.

Right... but now that is (arguably) cost competitive with American labor and manufacturing. Or at least it's more cost competitive than it otherwise would be.

I mean this is kind of the price of putting what we say first. Want higher minimum wages, higher environmental standards, unionized labor, benefits/healthcare, lunch breaks, etc.? We will have to pay more, and we should, for those things.

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slipperydippery ◴[] No.45027887[source]
> Right... but now that is (arguably) cost competitive with American labor and manufacturing. Or at least it's more cost competitive than it otherwise would be.

This won't work for clothes. We'd need Wal-mart shoppers to be spending like $400/outfit (incl. shoes) to even maybe bring those jobs back to the US. For clothes specifically, short of raising prices so much that the poorest few tens of a percent of the population are reduced to wearing shit-tier disposable clothes covered in also-cheap patches and often worn threadbare, shoes fully wrapped in duct-tape because the soles are practically gone, et c, there's no way you're bringing those jobs back. We'll just pay more for the exact same stuff, with few or no extra jobs as a trade-off.

Meanwhile, goods partially manufactured here (materials made here, finished elsewhere; materials foreign, construction domestic) will see price increases due to tariffs, which may harm sales, which may reduce employment. Between that and any broader economic down-turn resulting from these policies (can't buy as many things if prices are up, can't spend more on expensive US goods if your basics go up in price) I wouldn't be surprised if we see a bunch of the remaining US clothing manufacturers go out of business in the next few years. I have several brands I like that are already showing visible signs of distress (things like products lines being reduced, no new models showing up) and am worried I'll soon have almost no US clothes to choose from, due to these "protectionist" policies.

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1. ericmay ◴[] No.45028896[source]
> This won't work for clothes

Says who? Also you're forgetting if we as a country decide hey this really doesn't work for clothing we can just lower the tariffs on clothing.

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2. slipperydippery ◴[] No.45029510[source]
> Says who?

Uh, labor costs? I guess we could work to lower those, though. Like, a lot lower.

Meanwhile if the $2 wholesale-in-China shirt costs $30 on the shelf due to tariffs and the identical-quality US-made one costs $40 because that's just what it costs, the latter won't even be made, zero factories will start up to manufacture them. You'd have to raise prices a lot for it to make sense to even try, clothes are (relatively—still far less than once-upon-a-time, which is why the poor can afford to wear clothes that aren't third-hand and much-mended) labor-intensive despite lots of automation because machines remain terrible at manipulating cloth, despite decades of effort at solving that problem.

It's really expensive to make clothes in the US, and skimping on quality doesn't save all that much, percentage-wise. Being that they're also a necessity, we'd truly have to drive quality of life way down for a large chunk of the population to get that industry making low-end clothes.

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3. ericmay ◴[] No.45031703[source]
American made t-shirts today don't even cost $30.
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4. kalleboo ◴[] No.45033531{3}[source]
What does "American made" mean? Is the raw fabric also made in America or is it just cut and sewn together in America?
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5. ericmay ◴[] No.45034298{4}[source]
Here is an example: https://www.allamericanclothing.com/collections/shirts/produ...

According to the website it’s compliant with the Berry Amendment, made in California, $15. From what I understand Berry Amendment “compliance” means all raw material and manufacturing is exclusively US sourced and US manufactured.

A quick comparison I saw was this:

  A “Made in USA” jacket could have fabric from China but still be assembled in the U.S.

  A Berry Compliant jacket must have U.S.-made fabric, thread, zippers, and even labels!
There’s a lot of different variations of these products in general and this is just one example.