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

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.

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]

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])

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

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.

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