The tariff on cheap packages all online shoppers should know about

Summary

Apple News Today

Episode: The tariff on cheap packages all online shoppers should know about
Host: Shumita Basu
Date: August 27, 2025

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Episode Overview

In this episode, Shumita Basu covers three prominent stories making headlines:

• President Trump's controversial attempt to remove Federal Reserve Governor Lisa Cook and the broader implications for the Fed’s independence.
• A new tariff policy that will impact online shopping for millions of Americans by eliminating the de minimis threshold for duty-free imports.
• The engagement of Taylor Swift and NFL star Travis Kelce, a celebrity news story generating massive public interest.

Additional stories touch on a Social Security data breach, AI's effect on youth employment, and a social media parenting trend encouraging more outdoor play for children.

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Key Discussion Points & Insights

1. Trump’s Attempt to Remove Federal Reserve Governor Lisa Cook

• Background: President Trump is attempting to fire Lisa Cook, a sitting Federal Reserve Governor, a move Cook is legally contesting.
• Legal Context:
  • The Federal Reserve’s unique structure prevents the president from firing its board members without cause. This legal precedent stems from a Supreme Court ruling, but its practical application is untested ([00:05]).
• Administration’s Justification:
  • Trump alleges Cook committed mortgage fraud, a claim echoed against other political opponents, including Letitia James and Adam Schiff ([01:24]).
  • These public allegations appear politically selective, especially as parallel cases involving Republican figures are reportedly not pursued with the same vigor ([03:11]).
• Systemic Concerns:
  • Bill Pulte, head of the Federal Housing Finance Agency, is driving the criminal referrals. The acquisition and use of sensitive mortgage data for political ends is raising alarms ([02:36]).
• Potential Impact:
  • Removing Cook would allow Trump to gain majority control over the Fed board, potentially altering US monetary policy ([03:57]).
• Notable Quote:
  • "He has used his platform to further these claims, and I think it's important to note against people that the administration has framed as its adversaries." – Rachel Siegel ([02:36])

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2. The End of the De Minimis Exemption: Tariffs on Cheap Packages

• Policy Change:
  • The US de minimis threshold, allowing imported packages worth under $800 to enter duty-free, will be revoked at the end of August.
  • This affects e-commerce giants such as Shein, Temu, and potentially Amazon ([04:50]).
• Rationale:
  • Economic: Intended to level the playing field for domestic businesses by closing a historic tax loophole now used for billions in trade, especially fast fashion ([05:06]).
  • Security: Claimed by the administration to help prevent fentanyl smuggling, as fast-tracked packages often avoid thorough customs scrutiny ([05:47]).
• New Requirements:
  • Starting Friday, every imported package must include a detailed customs declaration (contents, value, country/manufacturer, components) ([06:12]).
  • This abrupt regulatory change has confused international mail carriers—some European services have suspended US shipments due to unclear compliance procedures.
• Impact on Small Businesses and Consumers:
  • Small businesses relying on cheap imports face existential threats.
  • Consumers will likely see higher prices, particularly in shoes and clothing, or find certain goods temporarily unavailable ([07:35]).
• Notable Quotes:
  • "Particularly shoes and clothing are going to be the two biggest impacted categories." – Sean Henry, CEO of Stord ([07:35])
• Exemptions:
  • Letters and gifts under $100 between individuals remain exempt; there’s no need to rush personal shipments ([07:56]).

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3. Taylor Swift and Travis Kelce’s Engagement

• Announcement:
  • Taylor Swift and Travis Kelce announced their engagement after two years of dating. Their relationship has been a cultural phenomenon, with public appearances boosting NFL viewership among women and inspiring Swift’s music ([08:53]).
• Backstory:
  • Kelce’s playful public attempt to woo Swift began with a friendship bracelet at her Kansas City concert, a story recounted on the "New Heights" podcast, which broke a YouTube viewing record ([09:23]).
• Swift’s Perspective:
  • "This kind of felt more like I was in an 80s John Hughes movie, and he was just, like, standing outside of my window with a boombox, just being like, I want to date you." – Taylor Swift ([09:46])
• Impact:
  • Swift and Kelce’s social media engagement announcement received one million likes in nine minutes ([10:15]).
  • Their relationship has transcended celebrity culture, influencing sports, music, and social media trends.

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4. Quick News Bites

[10:15]

• Data Security Concern:
  • A government whistleblower alleges Social Security data for 300 million Americans was placed on a vulnerable server, raising fears of massive identity theft—though the SSA claims there’s no breach ([10:15]).
• AI Job Disruption:
  • New research shows that AI, since the release of ChatGPT, disproportionately impacts younger workers (22-25) in sectors like software and marketing, potentially creating a generational divide ([10:15]).
• Parenting Trend – "Feral Child Summer":
  • A resurgence in unsupervised, outdoor play for children is being championed on social media. Research supports its benefits for emotional regulation and independence ([10:15]).

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Notable Quotes & Memorable Moments

• Rachel Siegel on politically motivated probes:
  "He has used his platform to further these claims, and I think it's important to note against people that the administration has framed as its adversaries." ([02:36])
• Sean Henry on tariff impacts:
  "Particularly shoes and clothing are going to be the two biggest impacted categories." ([07:35])
• Taylor Swift on Kelce's overture:
  "If this guy isn't crazy, which is a big if, this is sort of what I've been writing songs about wanting to happen to me since I was a teenager." ([10:03])
• On the tech job market:
  "Researchers found workers aged between 22 and 25 saw a decline of 16% in jobs like software engineering, marketing and customer service, even as overall employment grew." ([10:15])

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Timestamps to Key Segments

• 00:05 — Trump’s attempt to fire Fed Governor Lisa Cook and the legal fight.
• 02:36 — Rachel Siegel discusses the broader context and potential data misuse.
• 04:50 — Reporter Megan Casella introduces the ending of the de minimis exemption for imported goods.
• 05:47 — Laura Curtis explains administration’s reasoning (economic fairness, fentanyl).
• 06:12 - 07:56 — Compliance changes, small business impact, and advice for shoppers.
• 08:53 - 10:15 — Taylor Swift and Travis Kelce’s engagement story and cultural impact.
• 10:15 — Headlines: Social Security data breach, AI and youth jobs, “Feral Child Summer.”

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Episode Takeaways

• Political maneuvers at the Federal Reserve signal a shift in the checks and balances of economic policy.
• Massive changes in the way cheap goods are imported could make online shopping more expensive and less convenient for Americans.
• Celebrity culture, through the lens of Swift and Kelce’s relationship, continues to shape broader trends far beyond music and sports.
• Significant developments in data security, technology’s impact on employment, and parenting philosophies round out a diverse news day.

For more details, listeners are encouraged to check out Apple News and the referenced articles for deeper dives into each subject.

Transcript

[A]

Good morning. It's Wednesday, August 27th. I'm Shemitah Basu. This is Apple News today. On today's show, a big change coming that could impact your online shopping habits, who's really losing out to AI in the job market, and the celebrity engagement heard around the world. But first, to the fallout of President Trump's attempts to fire Federal Reserve Governor Lisa Cook. Cook is refusing to step aside and now plans to sue the administration. Yesterday, her lawyer described Trump's moves as illegal. The Supreme Court had previously ruled that, unlike many other agencies, the Federal Reserve's unique structure prevented Trump from firing its leadership without cause. But what that means in practice has yet to be tested in court. The court's position has helped protect the Fed chair, Jerome Powell, but Trump has consistently sought to undermine the board's independence. And this is his most direct attempt to change the board to his favor. At his Cabinet meeting yesterday, he discussed openly his plans to go further.

[B]

We'll have a majority very shortly, so that'll be great. Once we have a majority, housing is going to swing, and it's going to be great.

[A]

Underpinning the administration's argument that they have the cause they need is a so far unproven allegation that Cook committed mortgage fraud. It's not the first time that the administration is making these sorts of claims, according to Rachel Siegel, a housing reporter at the Washington Post.

[C]

First, they made similar accusations against Letitia James, who is the Attorney General of New York State. She, along with other attorneys general, has brought lawsuits against both Trump administrations. And then we saw the president make similar public accusations against Senator Adam Schiff, who led impeachment proceedings against President Trump when Schiff was a House member.

[A]

Cook, James, and Schiff have all denied wrongdoing. Siegel said as well that the tactic being used on Cook, a nonpartisan economist, was notable. All three now face criminal probes from the Department of Justice. These tactics stem in large part from an office you may be unfamiliar with, the Federal Housing Finance Agency run by Bill Pulte, Siegel told us. Pulte has been relentlessly pursuing allegations of mortgage fraud since Trump appointed him in March.

[C]

He has used his platform to further these claims, and I think it's important to note against people that the administration has framed as its adversaries. Now, that leaves a lot of pretty big unanswered questions. It's not clear how Pulte has accessed this very personal private mortgage information. That is the kind of information held about millions and millions of Americans. It's not clear how these investigations went from you know, his personal interest all the way up to being criminally referred to the Justice Department.

[A]

Mortgage fraud is against the law, and the government does typically investigate cases about it, the Washington Post reports. Those cases are often brought by the FHFA's Inspector General as opposed to the head of the agency. And and Fed watchers and legal experts said that the Trump administration's cases and the public airing of unproven allegations seemed politically selective in nature. For example, the Republican attorney general of Texas and Senate candidate Ken Paxton reportedly claimed three houses as his primary residence, and it's unclear if he's facing a similar investigation from the administration. Removing Cook would allow for Trump to have a majority of allies on the Fed board that could potentially outvote Powell on any interest rate decision.

[C]

In addition to him making these accusations against Lisa, Cook is trying to install his people on the Federal Reserve and therefore have much more influence than he's been able to have so far on interest rate policy, on broader economic policy. And that's something that has very clearly been a focus of President Trump before and likely after what he's trying to do with Lisa Cook.

[A]

No previous president has tried to oust a sitting Fed governor, and the Fed was already considering lowering interest rates next month. Moving on to some big changes coming this week that could impact your online shopping habits. Reporter Megan Casella explained it this way on cnbc.

[D]

The president says he's going to be revoking entirely the de minimis threshold for all packages coming in from abroad. It'll be taking effect at the end of August. Now this is something that will affect companies like Shein and Tamu. Amazon could be exposed here.

[A]

The de minimis exemption is basically a tax loophole that allows packages worth less than $800 to enter the US duty free. It roughly translates to too small to matter, and it's been around since the 1930s. It was originally intended for items where it cost more to collect the tax than the revenue it brought in. But its usage has exploded in recent years, especially for things like fast fashion and cheap to. And these types of shipments accounted for roughly $1 billion in trade last year, according to Bloomberg. The administration says the justification for closing the loophole is now twofold. As Bloomberg's global trade reporter Laura Curtis explained on their Big Take podcast, this.

[E]

Is one large loophole they say that they're closing to make things more fair for domestic businesses. Another justification from the administration is around fentanyl. So part of his justification anyway is that because these packages are fast tracked and avoiding customs scrutiny, we don't know what's in them, and it very well could be, you know, that this is a route for fentanyl into the country.

[A]

There is some bipartisan support for closing this loophole, and right now the US's is much higher than comparable Western countries. But Curtis notes that like many of Trump's past declarations and executive orders regarding trade and tariffs, there has been some confusion. As of this Friday, every package that is shipped to the US will need to have with it a customs declaration stating what's inside, how much it's worth and where it came from, and not just where it shipped from, but where it was made, sometimes even its component parts, Bloomberg reports. This presents a huge compliance burden that didn't exist before. That confusion has already caused some mail carriers in European countries to suspend shipments to the us, saying there are not clear procedures in place for paying these new duties. Small businesses are also worried about whether they'll be able to survive if they can no longer import things cheaply. E commerce platforms like Etsy will feel these changes, as well as the millions of people who sell on the site. What this all means for you is still up in the air. Things like letters and gifts between individuals under $100 are exempt, so you don't really need to rush to send out that birthday present. But Sean Henry, CEO and co founder of the supply chain company stored, told ABC7 New York There are some things you might consider buying this week if you know you'll need it in the future.

[F]

Particularly shoes and clothing are going to be the two biggest impacted categories. They're where the highest effective tariff rates have been given, and they are the ones that are typically being utilized for this loophole. Those are the categories that will be impacted the most, with that effective and consumer price estimate being much higher, the.

[A]

Director of the Yale Budget Lab, a nonpartisan policy research center, told USA Today. Aside from increased prices, customers may also notice that some goods are simply not available at all if they previously came in under the de minimis exemption. That is, at least until businesses figure out their future plans. Now it's a love story and Taylor Swift said yes. The global pop star announced on social media yesterday that she and NFL star Travis Kelce are engaged after two years of dating. You might remember how it all started, with Kelce going viral on his podcast New Heights by declaring to his brother Jason that he wanted to date Taylor Swift. This was shortly after her ERAS tour made a pit stop in Kansas City and she performed at Arrowhead Stadium, where Kelsey plays for the Chiefs.

[B]

I didn't get to hand her one of the bracelets I made for her. You made her a bracelet? Yeah. Out of what? If you're up on Taylor Swift concerts, there are friendship bracelets, and I received a bunch of them being there, but I wanted to give Taylor Swift one with my number on it. All right. Ooh, Your number's in 87 or your phone number. You know which one. So she doesn't meet anybody and she doesn't. Or at least she didn't want to meet me. So I. I took it personal.

[A]

When Swift made her debut appearance on the New Heights podcast just a couple of weeks ago, which, by the way, broke a Guinness world record for most concurrent views for a podcast on YouTube with 1.3 simultaneous viewers. She formally announced her upcoming album, the Life of a Showgirl, and she and Kelsey offered some rare insight into their relationship. And she confirmed his bold move paid off.

[G]

This kind of felt more like I was in an 80s John Hughes movie, and he was just, like, standing outside of my window with a boombox, just being like, I want to date you.

[B]

Yeah, do you want to go on.

[G]

A date with me? I made you a friendship place. So do you want to date me?

[B]

Just come outside and meet me. Just meet me once. Just give me a chance.

[G]

I was like, if this guy isn't crazy, which is a big if, this is sort of what I've been writing songs about wanting to happen to me since I was a teenager.

[A]

They started dating in the summer of 2023, went public that fall at an NFL game, and soon became regular fixtures at each other's events. Their relationship led to a spike in NFL viewership among women. Swift watched Kelce win the Super bowl in 2024. He made a surprise appearance later that year on stage at the ERAS Tour, and several apparent nods to their love story showed up in her latest album, the Tortured Poets Department D, brand new Full Throttle. Touch me while your bros play Grand Theft Auto. It's true, swear Scouts. Whether you're a Swifty or not, it's undeniable that the couple has generated an enormous amount of public interest. Their joint Instagram post announcing their engagement accrued one million likes in just nine minutes. Before we let you go, a few other stories we're following. The Department of Government Efficiency put sensitive information of millions of Americans, including their Social Security numbers, names and addresses, onto a risky server. That's according to a whistleblower complaint filed by the Social Security Administration's chief data officer, Charles Borges, NBC News reports. Borges accused the SSA's chief information officer, an ally of Elon Musk, of violating policies by putting a live copy of the country's Social Security information in a cloud environment, circumventing oversight. That copy contains information on 300 million Americans. Borges warned that if bad actors gain access to this information, it could lead to widespread identity theft. A spokesperson for the Social Security Administration said the data is walled off from the Internet and they are not aware of any compromises. AI could be hitting young people hardest when it comes to the job market, according to a new study that analyzed payroll data following the release of ChatGPT in 2022. Researchers found workers aged between 22 and 25 saw a decline of 16% in jobs like software engineering, marketing and customer service, even as overall employment grew. But Wired reports that the same analysis showed that for older workers, employment was holding strong, suggesting that they held developed skills harder to automate. It suggests a possible generational divide as companies embrace the technology and finally remember Brat Summer? Well, how about Feral Child Summer? The phrase describes a parenting style that's making a comeback, at least on social media. It involves letting your kids run wild and free outside for some unsupervised and unstructured playtime. And it turns out there is some science backing why it can be good for children's brains. A study released in 2018 found that kids today spend about 35% less time outside than their parents did. And that matters because navigating risky wild spaces is good for things like emotional regulation and problem solving. One scientist told NatGeo that kids who are allowed to play outside are also more independent and self sufficient. You can find all these stories and more in the Apple News app. And if you're already listening in the news app right now, we've got a narrated article coming up next. The Wall Street Journal has the story of a billionaire heiress and her former best friend whose tight bond once included going to yacht parties and beach vacations, but ended up in courtrooms after getting crypto advice from a psychic. If you're listening in the podcast app, follow Apple News plus Narrated to find that story. And I'll be back with the news tomorrow.