The de minimis exemption, allowing duty-free import of low-value shipments under $800, has been terminated by President Trump's executive order, impacting global supply chains and increasing costs for consumers and businesses alike. This abrupt change has created operational challenges for retailers, particularly small companies reliant on e-commerce, with potential price hikes leading to an estimated $10.9 billion cost to U.S. consumers. The measure aims to enhance scrutiny on imports and combat issues like illegal goods entering the country.

Over half of consumers participating in this year’s Prime Day plan to purchase everyday essentials, influenced by concerns over rising prices due to tariffs. Many shoppers are seeking deeper discounts, with a significant portion relying on social media for deal information. Additionally, consumer confidence has fluctuated amidst tariff messaging, prompting early purchases and interest in deals from retailers beyond Amazon.

The article discusses the impact of tariffs on retail pricing strategies, highlighting a CEO's insights on how retailers are managing inventory and pricing amid rising tariff costs. It emphasizes the delayed effect of tariffs on consumer prices and the cautious approach retailers take to avoid alienating customers as they navigate increased costs.