Goodbye, cheap online shopping

Summary

Marketplace Morning Report

Episode: Goodbye, cheap online shopping
Date: August 29, 2025
Host: Lyanna Byrne (BBC World Service for Marketplace)
Duration: ~8 minutes

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Episode Overview

This episode centers on a major change to U.S. import rules, specifically the closure of the "de minimis" loophole that has enabled low-value foreign purchases to enter the U.S. with little or no tax. The report outlines the new regulations, explores their effects on global e-commerce and exporters, and briefly touches on related economic stories from around the world. The second half features a moving profile of Paris’s last newspaper hawker, Ali Akbar, and his recognition by France’s president.

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Key Discussion Points & Insights

1. U.S. Closes “De Minimis” $800 Loophole on Cheap Imports

[01:01]

• Main Point:
  Americans buying inexpensive goods online from abroad will soon pay more due to the closure of an import exemption on packages under $800.
• Background:
  This exemption, which previously kept imported goods tax-free, ended first for China and Hong Kong but is now revoked globally.
  • The U.S. government cited both the volume increase (over 1.36 billion parcels by 2024) and misuse for smuggling hazards as reasons for the change.

Notable Quote:

“The system has been abused and used to smuggle the deadly opioid fentanyl into the U.S.”
— Sir Jana Tuari, BBC [01:35]

2. How Will the New Rules Work?

[01:35]

• Transitional Flexibility:
  Postal services will have a limited-time option to pay a flat duty (ranging $80–$200), otherwise, the item will be subject to the sending country's tariff (which, for countries like India, could be as high as 50%).
• Flat Duty Critique:
  Kate Muth, International Mailers Advisory Group, argues this “solution” is unworkable.

Notable Quote:

“The flat duty won't help... For example, the UK good that's maybe $20 coming to the US—if you use that flat rate per package, it would be $80 as the tariff... I don't expect anybody to use it anyways.”
— Kate Muth [02:24]

3. Immediate Effects on Exporters

[02:46]

• Shipping Suspended:
  Some postal services have already halted low-value shipments to the U.S.
• Business Confusion:
  UK skincare exporter Julian Bataille explains they face deep uncertainty about pricing, customer impact, and how they will communicate this to partners and funders.

Notable Quote:

“You know, the most frustrating thing is the short answer is no, we don't— we don't know how much of that we want to obviously charge to the customer and is it going to affect their kind of buying attitudes and habits?”
— Julian Bataille [03:01]

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4. Brief World Economic Updates

[03:22]

• Indian rupee slips as new U.S. tariffs rattle Asian currency markets.
• German retail sales down 1.5% for July, raising concerns on consumer spending.
• Japan’s Defense Ministry seeks a record $60 billion budget, tripling spending on drones due to regional tensions.

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Paris' Last Newspaper Hawker: Ali Akbar

[04:29]

• Profile:
  Ali Akbar, 72-year-old Pakistani-born, holds out as Paris’s last news hawker after starting the job in 1973 on the Left Bank.
• Change Over Time:
  Once one of several dozen, he’s now alone due to, as he says, “digital” competition.
• Why Keep Going?
  Akbar says he stays for independence, fun, and connection with the community—not money.
• Recognition:
  Awarded France’s Order of Merit for 50 years of community service.
• Neighborhood Evolution:
  Akbar observes that Saint-Germain has become “touristic” and lost its local “soul.”

Memorable Exchanges:

“When I started to sell the paper newspapers here in Paris we were between 35, 40 hawkers… But now today I'm alone... because of digital.”
— Ali Akbar [04:45]

“I feel free. That's—you see, before, people were looking for me… Now today, I'm looking to sell. I try to sell papers. It's different.”
— Ali Akbar [04:45]

“They were looking after me to buy papers. And now today, I’m looking to sell…It’s changed.”
— Ali Akbar [04:57]

“Atmosphere in St. Germain is completely changed because before, the St. Germain was just like a village. Now became touristic. There is no more soul in St. Germain.”
— Ali Akbar [06:45]

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Timestamps for Key Segments

• U.S. closes $800 import loophole: 01:01–02:46
• Global business and economic briefs: 03:22–04:29
• Ali Akbar, Paris’s last news hawker: 04:29–07:08
• Show close/personal farewell: 07:08–07:27

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Episode Close

The episode wraps with Lyanna Byrne’s final sign-off as host, expressing thanks to the audience.

“For the last time as your presenter of Marketplace Morning Report from the BBC World Service, I'm Liana Byrne. It's been a real pleasure. Thanks for listening.”
— Lyanna Byrne [07:08]

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Summary Takeaway

This brief episode delivers a clear warning for U.S. online shoppers: the era of tax-free, cheap foreign imports is over, with ripple effects for businesses and economies across the globe. It contextualizes this policy shift with both micro (personal business impact) and macro (currency, defense spending) developments, contrasted with a heartwarming human-interest story reflecting resilience and change amid digital upheaval.

Transcript

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[Lyanna Byrne]

The US is closing a loophole that's kept a lot of online shopping cheap. Good morning, this is the Marketplace Morning Report and we're live from the BBC World Service. I'm Lyanna Byrne. Yes, if you're an American shopper, buying cheaper goods from abroad could be about to cost more. The US has wrapped up a long running global tax exemption on imports worth $800 or less. It's an end to what is known the exemption already ended for packages from China and Hong Kong. Now it's been stopped globally. The BBC's Sir Jana Tuari explains why.

[Sir Jana Tuari]

The White House says that between 2015 and 2024 the volume of de minimis shipments entering the US increase to more than 1.36 billion and that the system has been abused and used to smuggle the deadly opioid fentanyl into the U.S. now there is a bit of flexibility for the next six senders having to pay either a fixed amount ranging from 80 to $200 or be subject to the tariff rate in the country of origin, which of course in India's case for example, could be as high as 50%.

[Lyanna Byrne]

Now, like Serjana said, there will be a transition period where postal services can pay a flat duty. But Kate Muth, executive director of International Mailers Advisory Group, says that's not going to help.

[Kate Muth]

The flat duty won't help because the way that's set up is it's $80 per package if you are one of the lower tariff countries. So for example the UK good that's maybe $20 coming to the US if you use that flat rate per package it would be $80 as the tariff. So six months that flat rate goes away completely and I don't expect anybody to use it anyways.

[Lyanna Byrne]

Some overseas postal services have already stopped sending low value parcels to the us. In the uk one of the businesses feeling the squeeze is Yandy Skin, a BE exporter run by Julian Bataille. He says he's no idea how to charge customers.

[Julian Bataille]

You know the most frustrating thing is the short answer is no, we don't, we don't know how, how much of that we want to obviously charge to the customer and is it going to affect their kind of buying attitudes and habits as well. So also was wanting to fundraise and it just makes it a very difficult time because we don't quite know how to spin the story to investors and there's a lot of uncertainty as well.

[Lyanna Byrne]

Exporter Julian Bataille there. Now let's do the numbers. The Indian rupee slipped 310 of a percent against the dollar as part of a wider slide in Asian currencies as US tariffs and Indian goods continue to spook investors. And in Germany retail sales fell by 1 1/2% in July, far worse than expected. Raising fresh concerns about consumer spending in Europe's biggest economy. Meanwhile, the Japanese Defense Ministry wants to triple spending on drone manufacturing as part of a record $60 billion bud. It's over rising concerns on Chinese movements in the area. Japan has committed to doubling military spending to 2% of GDP. It was once a common sight news hawkers selling their newspapers on the street. But they've all but disappeared in the age of the Internet. But in Paris one still stands. Ali Akbar still pounding the streets just as he has been for the past 50 years. And now France's president is honoring him with the order of merit recognizing distinguished service. The BBC's Hugh Schofield has the story.

[Hugh Schofield]

Here he is France's possibly Europe's last newspaper hawker. Ali Akbar, a sprightly Pakistani born man of 72. It was in 1973 that he began in the trade on Paris Left bank. And against all the odds he's still at it.

[Ali Akbar]

When I started to sell the paper newspapers here in Paris we were between 35, 40 hawkers, hawkers. But now today I'm alone because no, no Banvai's papers, you know now because of digital what makes you keep going? Because I, I'm Independent. I'm free, I'm alone. So, no, no, no one is commanding me, you know, so I'm. I feel free. That's. You see, before, people were looking for me. They were looking after me to buy papers. And now today, I'm looking to sell. I try to sell papers. It's different. It's changed.

[Hugh Schofield]

Now Ali sells 20 or 30 copies of Le Monde a day, and he keeps half the sales price. So money is not the motive. He does it because it's fun and people love him.

[Lyanna Byrne]

Ali has been famous for us for more than 25 years and more. Selling his papers and making jokes. He knows everyone around the whole area.

[Hugh Schofield]

It's just a shame he only sells 20 papers every day.

[Lyanna Byrne]

His stories are amazing.

[Ali Akbar]

All of them know. They know me, you know, because they were. I've been selling papers in Institute of Political Science. Po we call in French Sciences poor. So I met. So because they used to buy papers every day, Le Monde. So they became friends and give me some names. Some names. Mako, Adolph. I didn't want to. Mako also bought me papers. Yes. During that period of time.

[Hugh Schofield]

Do you think he remembers that? That's why he's giving you the Order of Merit now?

[Ali Akbar]

No, no, not at all. Not at all. Because he knows me. He knows my backstory. He decided to do something for me, I think. Breaking news.

[Hugh Schofield]

Tell me, ali, how has St. Germain, the neighborhood changed in the 53 years that you've been selling newspapers here?

[Ali Akbar]

Atmosphere in St. Germain is completely changed because before, the St. Germain was just like a village. Now became touristic. They were sold, but there is no more sold in St. Germain. Sold. Exactly.

[Hugh Schofield]

You gotta laugh, right?

[Ali Akbar]

Say you, say ye. Say you.

[Lyanna Byrne]

That was the BBC's Hugh Schofield reporting in Paris and for the last time as your presenter of Marketplace Morning Report. From the BBC World Service, I'm Liana Byrne. It's been a real pleasure. Thanks for listening.

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The Trump administration is making deep cuts to education research.

[Lyanna Byrne]

The cancellation notices started coming.

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