On Sunday, Ross Gerber, the CEO of Gerber Kawasaki Wealth & Investment Management, shared a workaround to President Donald Trump’s new tariffs on EU goods, revealing that U.S. consumers can avoid taxes by ordering items valued under $800 from the EU.
What Happened: Gerber highlighted an email from Swedish luxury shoemaker Morjas & Company, which reassured U.S. customers that orders below $800 remain duty-free under current U.S. import regulations.
He shared this insight with his over 387,000 followers on X, formerly Twitter, writing, “Seems like if you order things in under $800 increments from the EU, then Trump can’t tax you. Expect more of these emails from companies.”
The email from Morjas explained that although the new tariffs have increased duties on EU products, the “de minimis rule” still applies to shipments under $800, meaning they remain exempt from additional duties or taxes.
“Steep tariffs on products from the European Union means that shipments above the 800 USD threshold may now be subject to higher import duties upon arrival in the U.S. The final amount depends on how customs classifies the products in your order,” the email read.
See Also: JPMorgan Raises Recession Risk To 60% As ‘Largest US Tax Hike’ In 60 Years Hits Global Economy
Tariffs are direct taxes specifically applied to imported goods to protect domestic industries, while duties are indirect taxes imposed on consumers for both imported and domestic goods.
Why It Matters: Trump’s recent tariffs, part of his “reciprocal tariff” strategy, have created significant concerns about rising costs for U.S. consumers.
Under the new policy, a 10% universal tariff on all imports will take effect on April 5, 2025, with additional duties targeting specific countries such as China, India, and members of the EU. Essential materials will be exempt from the tariffs.
Last week, Trump ended the de minimis exemption for China and Hong Kong — a policy that previously allowed imports under $800 to enter the U.S. without tariffs.
The new order, which takes effect on May 2, 2025, comes amid Trump’s accusations that Chinese shipping firms are exploiting loopholes and concerns over the influx of fentanyl from China.
U.S. Customs and Border Protection processes around four million de minimis shipments from China every day, allowing them into the country duty-free.
According to a White House fact sheet, these shipments will now be subject to a charge — either 30% of their value or $25 per item, with the rate increasing to $50 per item starting June 1.
Photo Courtesy: fizkes
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