Impact Assessment of Space Gits Crowdfunding Campaign following the US's Suspension of De Minimis Exemption
In a recent development, the suspension of the De Minimis Exemption by the White House has introduced a significant change in the US tariff policy on imports from the EU. This move increases the ceiling tariff on nearly all EU imports to 15%, a substantial rise from the previous average of 4.8%.
This change is likely to impact US backers of crowdfunding campaigns, particularly those ordering products from the EU. Previously, smaller shipments were often exempt from tariffs under the De Minimis Exemption, allowing backers to receive items without additional tariff costs. However, with the exemption suspended, even lower-value imports could attract tariffs, potentially increasing costs for individual consumers.
For instance, if a backer funds a $100 product from an EU creator, the tariff alone could add $15, not including duties, taxes, or customs fees that often apply. The exact estimated costs vary by product and shipment value, but applying a 15% tariff directly adds at least that percentage to the cost of the product before shipping and other fees.
It is important to note that tariffs of 50% remain for certain products like EU steel, aluminum, and copper, but these are less relevant for most consumer goods in crowdfunding campaigns.
In addition to the new tariffs, it is best to assume there will be an additional handling fee for the Space Gits campaign. This additional cost may be announced via a sticker on the package by the carrier or a notification to pay the carrier before the package is released.
The suspension will affect packages shipped through the international postal system, with duties assessed according to either the Ad valorem duty or Specific duty methodology. The Specific duty methodology will be available for six months, after which all applicable shipments must comply with the ad valorem duty methodology.
It is not certain if books and miniatures will be exempt from the tariffs according to the current US duty system. However, it is worth mentioning that UK and EU backers currently pay around 20% extra in sales tax (VAT) and thus pay more for the rulebook and miniatures than US backers.
In conclusion, US backers of crowdfunding campaigns importing products from the EU are likely to face significantly higher costs due to new tariffs up to 15% on their imports, replacing the prior De Minimis exemption that offered tariff relief on smaller shipments. This results in higher effective prices for backers receiving physical goods shipped from the EU.
[1] Source: White House Executive Order, Office of the United States Trade Representative [5] Source: The Verge, "Trump's new tariffs on EU goods will hit consumers and businesses hard"
- The space-and-astronomy project, Space Gits, may incur an additional handling fee due to the new tariffs, which could be communicated by the carrier or require payment prior to the package's release.
- In the realm of game design, US backers have to be aware that the suspension of the De Minimis Exemption could result in higher effective prices for physical goods imported from the EU, as they could attract tariffs of up to 15%.
- The increased tariffs on European imports and potential VAT on UK and EU backers' purchases of rulebooks and miniatures suggest that politics and finance both play a significant role in science (space-and-astronomy) and business, with implications for general-news and consumers alike.
