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EBAY
New York Post
4 days

eBay, Etsy warn Trump's surprise move to end ‘de minimis' duty-free rule hurts sellers

1. eBay faces new customs duties on international purchases effective August 29. 2. Removal of duty-free treatment may disrupt eBay's revenue streams significantly. 3. Pressure from groups linking de minimis exemption to smuggling prompted the change. 4. The de minimis rule removal affects access to affordable goods for consumers. 5. Customs collection challenges may cause delays and impact trade further.

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FAQ

Why Bearish?

The removal of duty-free treatment adds costs for international buyers, likely reducing eBay's sales. Historical precedents show that increased tariffs can significantly decrease online retail activity, as seen during similar policy shifts in the past.

How important is it?

The direct impact on customs duties and potential revenue loss for eBay make this highly relevant. Trade flow changes and associated costs are significant issues for eBay's business model.

Why Short Term?

Immediate changes in customs duties will affect eBay's transactions and revenue in the short term. Similar policy shifts have previously led to rapid declines in ecommerce revenues as consumers adjust purchasing behaviors.

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