This covers both my supplies shop, beadinggem.etsy.com and my finished crafts shop, craftagems.etsy.com. The last day to order physical products for those of you in the United States (only) will be Wednesday, August 20, 2025. Again - the change only applies to customers in the US.
For US customers : this does NOT (yet?) affect digital products. So, if you would like any of my laser cut wood designs, please consider purchasing from my growing collection of digital files and have them cut in the US. There are SVGs for shapes and bezels and an exciting new range of nature themed SVGs - more about these another time.
Why has this become necessary? The present US de minimis exemption for tariffs on orders under US$800 from anywhere in the world going into the US will be removed by the US Administration on August 29, 2025. (The de minimis was already removed for Chinese-made goods back in May.) This means that all US customers will then have to pay a tariff tax on items made abroad, whether they order themselves or indirectly through a US company. This tariff goes to the US government; it does not in any way benefit the seller nor apply to items sold outside of the United States.
This sudden decision to remove the de minimis for US imports was abrupt and several months ahead of when it was expected to happen. To say the current situation is troubling for small businesses and customers is an understatement. The extra headache in running a business such as this with the sudden fluctuations (and the possibility that customers will incur extra charges at their border) certainly impedes the ability to supply the kinds of things that come from global small businesses.
China produces nearly 100 % of the world's supply of freshwater pearls as well as a variety of common findings. I stopped selling Chinese made goods to US customers back in May because the uncertainty was so profound. The only option then was for the shipping category of DDU - Delivery Duties Unpaid. This meant that US buyers would have to pay the duties at their door or most likely go to their post offices to pay the extra fees. At the time, the tariffs on Chinese made goods went well over 100% and then came back down. Some DDU shipments were also rejected by US Customs during this period.
Going forwards, the alternative DDP - Delivery Duty Paid - mode will likely be implemented although this would mean an extra charge added to the order (and sent to the US Administration). It is not at all clear if there is a mechanism yet to collect the duties, nor if the paperwork will be feasible for small businesses to take on without having any financial support staff. I shall be looking out for updates.
From August 29 onwards, US customers will have to pay 35% more for my laser cut wood unless I fill out substantial paperwork under the current CUSMA/USCMA trade agreement which was signed back in 2018. This is a lot of administrative time and effort for a small business selling little bits of wood costing as little as US$2.50. The paperwork that must accompany each order is greater than the actual shipping envelope! It is just not worth it for such a slim profit margin.
In my business, some of my supplies are vintage, produced by companies several decades ago which no longer exist. So I cannot get a certificate of origin (COO), a requirement in addition to tariff codes.
Most beads used in jewelry making are made abroad except for handmade beads like lampwork and polymer clay produced by US artisans. Miyuki and Matsuno beads come from Japan. Loads of beautiful Czech beads and Swarovski crystals come from Europe. China and India also produce a lot of beads. Each of these countries will have their own tariff level.
Within a country, the amount could change at any given time. According to the preliminary August data from the shipping company I use, the tariff amounts for Japanese made goods vary from 21% for earrings/charms to 10% for dolls. For China, it's 48.5% for earrings/charms to 30% on dolls. For India, the rates for the two items are the same as Japan but these could be going up and may rise to as much as 50%.
Gemstones are part of a highly integrated global system where the gems might be mined in one country and extensively cut and finished in another. It's not clear which country's tariff codes would have to be used, and while large companies have divisions to deal with these kinds of problems, small businesses do not!
Jewelry makers also use metals not just in findings (mostly made in China) but for wire work. The world's top 3 copper producers are Chile, Congo and Peru. These three countries produce more than 10x the amount that is currently feasible within the US. The top 3 countries for silver are Mexico, China and Peru. 40% of gold comes from China, Russia and Australia. Small metal jewelry making tools are often produced in India, Pakistan and China.
Many US-based businesses stocked up earlier to avoid the tariffs but as these stocks run down, new products will either be harder to find or will be significantly marked up in price for US consumers internally as the tariff costs are passed on.
Sadly, challenging times ahead for small jewelry crafters and businesses. One US reader messaged me to say that "tool options across different US sites seem pretty reduced." and she "found Bello Modo and Goody(Beads) effectively going out of business."
Please share in the comments below on how you are navigating this situation going forward.
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Original Post by THE BEADING GEM
I'm trying to use craft supplies I already have instead of buying new ones. But I have to buy asthma inhalers for one of my cats from Canada (costs about 1/3 of what it does in the US) and I've got a 6-month supply of them right now. What I'll do after that, I don't know.
ReplyDeleteWill use up my extensive stash, but am sad and angry that this unfit individual and his sycophants have hurt so many. He is robbing us of our modest income and is trying to take away our joy, but so far I still see the beauty around us.
ReplyDeleteI too have an extensive supply of goods but living in Canada helps. I've bought many of my large tools from US companies and I use Ramsey Customs and Logistics for all my importing now. It's a Custom brokerage that specializes in helping the little guys. Very affordable!!
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