Why You're Paying More For Cheaper Things 10/30/25

Summary

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Your Money Minute — "Why You're Paying More For Cheaper Things"

Podcast: Your Money Minute (CNBC)
Host: Jessica Ettinger
Guest: Ralph McLaughlin, Chief Economist, Open Brands
Release Date: October 27, 2025
Episode Duration: ~60 seconds

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1. Episode Overview

This concise episode explores a surprising jump in prices for categories usually seen as "cheaper" goods—such as personal care products, small electronics, and recreational items. CNBC’s Jessica Ettinger and guest economist Ralph McLaughlin break down the reasons behind the new cost reality for these products, particularly in the wake of recent changes to import tariff exemptions.

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2. Key Discussion Points & Insights

A. Recent Price Surges

• Ralph McLaughlin reports a notable spike:
  • "The stretch from August to September is the strongest stretch of price increase that we've seen since the end of last year."
    [00:09; repeated at 00:48]
  • Main affected categories:
    • Personal care products
    • Small communications devices
    • Recreational products (including headphones)

B. The Tariff Exemption Change Explained

• Policy shift:
  • The "de minimis" exemption used to let packages worth under $800 enter the US duty-free.
  • As of August, this exemption was removed, exposing many imported items to new tariffs.
• Impact:
  • "The de minimis exemption previously allowed packages that were worth under $800 to come into the country and importers didn't have to pay any duties on them. So tariffs really didn't apply. Well, that was removed in August..." — Ralph McLaughlin [00:31]
  • This led to noticeable price increases in September for many everyday goods.

C. Advice for Consumers

• If you’re planning purchases of these once-cheaper products—especially personal care gadgets or electronics for the holidays—expect higher prices.
• Budgeting tip:
  • "If you're buying these previously tariff free items for yourself or as holiday gifts, adjust your budget accordingly." — Jessica Ettinger [01:06]

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3. Notable Quotes & Memorable Moments

• On the price spike:

  • "The stretch from August to September is the strongest stretch of price increase that we've seen since the end of last year." (Ralph McLaughlin, [00:09; 00:48])

• On the policy change:

  • "The de minimis exemption previously allowed packages that were worth under $800 to come into the country and importers didn't have to pay any duties on them. So tariffs really didn't apply. Well, that was removed in August..." (Ralph McLaughlin, [00:31])

• Host’s closing practical tip:

  • "If you're buying these previously tariff free items for yourself or as holiday gifts, adjust your budget accordingly." (Jessica Ettinger, [01:06])

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4. Timestamps for Key Segments

• 00:09: Ralph McLaughlin on the strong stretch of price increases
• 00:26: Categories hardest hit by the increases
• 00:31: Explanation of the de minimis tariff change
• 00:44: September price surge and consumer impact
• 01:06: Ettinger’s advice to holiday shoppers

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5. Tone & Style

The episode remains brisk, direct, and informative, sticking to CNBC's signature "just the facts" style while also offering actionable advice for listeners facing new cost realities this shopping season.

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For more on the topic or to hear the full interview with Ralph McLaughlin, visit CNBC.com.

Transcript

[A]

With a CNBC you Money minute, I'm Jessica Ettinger. You are seeing higher prices in some new product categories and here's why.

[B]

The stretch from August to September is the strongest stretch of price increase that we've seen since the end of last year. And the biggest increases we've seen have been across personal care products, the small communications devices, as well as recreational products, which would include things like health headphones.

[A]

That's Open Brand's Chief Economist Ralph McLaughlin on CNBC.

[B]

The de minimis exemption previously allowed packages that were worth under $800 to come into the country and importers didn't have to pay any duties on them. So tariffs really didn't apply. Well, that was removed in August and.

[A]

He says in September open brands saw price increases for a lot of those products.

[B]

The stretch from August to September is the strongest stretch of price increase that we've seen since the end of last year. And the biggest increases we've have been across personal care products, small communications devices as well as recreational products which would include things like headphones.

[A]

If you're buying these previously tariff free items for yourself or as holiday gifts, adjust your budget accordingly. The full interview with the On Brands economist [e-mail] I'm Jessica Ettinger.

[C]

CNBC introducing Fidelity Trader plus with customizable tools and charts you can access across all your devices, Try our most powerful trading platform [e-mail] plus investing involves risk, including risk of loss. Fidelity Brokerage Services LLC member NYSE SIPC.