UBS On-Air: Market Moves
UBS On-Air: Paul Donovan Daily Audio 'What tariff retreats teach us'
10 Feb 2025
US President Trump (temporarily) retreated from ending de minimis tariff exemptions. De minimis rules mean US consumers do not pay trade taxes on imports worth less than USD 800. This, alongside retreats from taxing Colombian, Mexican, and Canadian goods, emphasizes trade tax visibility. Consumers would notice the cost of these tariffs (affecting food and fuel prices, or the price of purchases from Temu), and would quickly realize that US consumers, not foreigners, pay tariffs. Highly visible tariffs lead to a quick retreat.
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