Business News

How US shoppers will be hit as tariff exemption ends

August 29, 2025

The United States has ended a tariff exemption rule that allowed goods worth $800 or less to enter the country without import duties. This change will affect many shipments, leading to possible higher prices and fewer product options for shoppers. The policy aims to prevent illegal smuggling and increase customs revenue.

Key Facts:

The U.S. removed a tariff exemption for imports valued at $800 or less.
This exemption, known as the de minimis rule, allowed about 1.4 billion packages to enter the U.S. duty-free last year.
The change is expected to lead to higher prices and fewer goods available for consumers.
Small businesses may face significant challenges as a result.
The rule was originally set to expire in 2027, but it was fast-tracked for repeal by an executive order from President Donald Trump.
The U.S. government claims this change will help reduce drug smuggling and increase revenue by $10 billion annually.
Packages without necessary documentation will face either country-specific duties or a fixed fee of $80 to $200 per package.
Letters and personal gifts under $100 will remain duty-free.

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BBC Business

US ends tariff exemption for delivery packages valued at $800 or less

August 29, 2025

The US government has ended the tariff exemption for small delivery packages worth $800 or less. This means packages will now have tariffs, and many countries have paused shipments to the US until they understand the new rules. The change aims to reduce the trade deficit and control the flow of goods like narcotics.

Key Facts:

The tariff exemption for packages valued at $800 or less is ending on Friday in the US.
More than one billion packages entered the US last year without paying tariffs due to this exemption.
Over 30 countries have paused shipping packages to the US until the new tariff details are clear.
DHL, a major delivery company, will not ship standard business parcels to the US because of unresolved questions about new tariffs.
Starting August 29, tariffs will be calculated either by a flat rate or based on the package's value and its country of origin.
After six months, all small packages will have tariffs ranging from 10% to 40%.
The US aims to reduce the trade deficit and slow the movement of illegal substances across borders.
This exemption previously aided the growth of international e-commerce, benefiting companies like Shein and Temu.

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Al Jazeera

Intel receives $5.7bn as Trump administration buys 10 percent stake

August 28, 2025

The U.S. government, under President Donald Trump, invested $5.7 billion in Intel, obtaining a 10% stake in the company. This investment is part of a plan to support domestic semiconductor production and was funded through the CHIPS Act. The deal is still being finalized and includes terms for possible additional stake acquisition.

Key Facts:

The U.S. government bought a 10% stake in Intel for $5.7 billion.
The funds were reallocated from the CHIPS Act, initially signed into law by Joe Biden.
A five-year warrant allows the U.S. to buy an additional 5% of shares if Intel's ownership of its operations drops below 51%.
The deal is under negotiation and involves the Department of Commerce.
Intel is separating its manufacturing unit (foundry) from its design business and may seek outside investments.
The future of Intel’s foundry business could change based on securing key customers or funding.
Intel faces competition from companies like NVIDIA, which excels in AI chip technology.

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Al Jazeera

Tesla sales continue plunging in Europe as anger at CEO Musk keeps buyers away

August 28, 2025

Tesla's car sales in Europe fell by 40% in July compared to the previous year, despite an overall increase in electric vehicle sales in the region. CEO Elon Musk's political statements have upset some Europeans, which may have contributed to the decline. The company also faces issues like delayed approval for certain car features and previous factory shutdowns.

Key Facts:

Tesla sales dropped 40% in July in the European Union compared to the previous year.
Chinese competitor BYD's market share increased to 1.1% in the same month.
Elon Musk has made political comments that upset some Europeans, including criticism of European leaders and support for a far-right party.
Tesla stock declined by 1.5% after these sales figures were released.
Tesla is waiting for European approval of its Full-Self Driving software, a feature already available in the U.S.
Earlier this year, Tesla temporarily shut down factories to update its Model Y, affecting production.
Tesla sold 6,600 cars in the EU in July, down from 11,465 cars the previous year.
From January to July, Tesla's overall European sales fell by 44%.

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PBS NewsHour

Price of weight loss drug Mounjaro to be discounted in UK pharmacies

August 28, 2025

The price of the weight loss drug Mounjaro in UK pharmacies is expected to increase, but Eli Lilly has made a deal to discount its price for suppliers. This means that the price rise for patients may not be as large as initially thought when buying it from private services or pharmacies. The NHS has a separate agreement, so their cost will not change.

Key Facts:

Eli Lilly plans to increase the list price of Mounjaro by 170%, affecting the highest dose.
The highest dose was initially set to rise from £122 to £330 per month.
With the new discount, suppliers will pay £247.50 for the highest dose.
Patients buying the drug privately may see less than a 50% price increase.
The NHS has an independent discounted rate, unaffected by this change.
About 1.5 million people in the UK use weight loss drugs like Mounjaro.
Majority of these users pay for the drug privately through pharmacies or online services.
Eli Lilly is working with private providers to keep the drug affordable from September 1.

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BBC Top Stories

Sportscar manufacturer Lotus to cut 550 jobs

August 28, 2025

Lotus, a sportscar manufacturer, is cutting 550 jobs at its UK headquarters in Norfolk. The company says these changes are needed to adapt to the current market conditions and maintain its business in the evolving automotive industry. Despite the job cuts, Lotus states it remains committed to its UK operations.

Key Facts:

Lotus is cutting 550 jobs at its headquarters in Hethel, Norfolk, UK.
The company had denied plans to close its UK factory or open a new one in the USA.
The decision to cut jobs comes after a review of its business objectives.
Lotus cites rapid changes in global policies and tariffs as reasons for job cuts.
The company remains committed to keeping its UK sports car and engineering operations.
Lotus is exploring growth opportunities, including partnering with third parties for manufacturing.
South Norfolk Council plans to support the affected employees and work with the government.
Lotus was founded in the 1950s and moved to its current location in the 1960s.

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BBC Business

Fed governor Lisa Cook sues Trump over firing

August 28, 2025

Federal Reserve Governor Lisa Cook is suing former President Trump after he ordered her removal from the Board of Governors. Cook argues that the reasons for her dismissal are based on unproven claims about her financial dealings, which she says violate her legal rights. The case highlights concerns over political pressure on the Federal Reserve's independence.

Key Facts:

Lisa Cook is the first Black woman on the Federal Reserve's Board of Governors.
Cook filed a lawsuit against former President Trump for attempting to remove her from the Fed.
Trump cited allegations of false statements on Cook's mortgage applications as the reason for her dismissal.
Cook claims these accusations are unsubstantiated and violate the Federal Reserve Act.
Federal law states that Fed governors can only be removed for specific reasons, called "for cause."
A close Trump ally accused Cook of mortgage fraud related to loans before she joined the Fed.
Cook's lawsuit aims to affirm her position and protect the Fed's independence from political influence.
The lawsuit names Trump, the board of governors, and Jerome Powell in their capacity to act on the matter.

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NPR Home

Electric cars eligible for £3,750 discount announced

August 28, 2025

The UK government announced a discount on some electric cars to encourage people to switch from petrol and diesel vehicles. Ford's Puma Gen-E and e-Tourneo Courier are the first to qualify for a £3,750 discount. The government plans to ban new petrol and diesel cars by 2030 and aims to make electric cars more affordable.

Key Facts:

The UK has introduced a £3,750 discount on certain electric vehicles (EVs).
Ford's Puma Gen-E and e-Tourneo Courier qualify for this discount.
Vehicles costing up to £37,000 can get discounts, with the most eco-friendly getting the largest reductions.
Another 26 EV models qualify for a £1,500 discount.
The government wants to ban new petrol and diesel car sales by 2030.
The discount scheme has £650 million in funding and will run for three years.
The UK has about 1.3 million electric cars, but only around 82,000 public charging points.

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BBC Business

Mexico to suspend package shipments to US as tariff exemption set to expire

August 28, 2025

Mexico will stop sending packages to the United States because a special rule that lets small packages enter the U.S. without paying tariffs is ending. Other countries in Europe have already made similar decisions. The change may impact companies like Shein and Temu that have been using this rule to send items to U.S. customers without paying tariffs.

Key Facts:

Mexico announced a halt to package shipments to the U.S. because a tariff exemption will expire.
The rule allowed packages worth less than $800 to enter the U.S. tariff-free and has been in place since 2016.
This change affects not only Mexico but also countries like Germany, Denmark, Sweden, Italy, and the UK.
Chinese e-commerce companies like Shein and Temu may face challenges as the rule changes.
Mexico is in talks with the U.S. about future shipping rules and tariffs.
DHL noted that key questions about new customs duties and data requirements remain unanswered.
The U.S. plans to end the tariff exemption are part of a broader trade strategy introduced under President Trump.
The tariff exemption change was previously applied to China, Hong Kong, Mexico, and Canada over drug-related border concerns.

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Al Jazeera

Nvidia is caught in Trump's China trade war, and it could impact the stock market

August 28, 2025

Nvidia, the largest company by market capitalization, is facing challenges from U.S. export controls on chips to China. These controls are affecting Nvidia's data center revenue and could impact its earnings and the broader stock market. The company is working to overcome these restrictions to tap into the growing Chinese market.

Key Facts:

Nvidia reported strong financial results but noted reduced data center revenue due to export controls to China.
The U.S. barred exports of Nvidia's H20 chips to China in April, reversing the decision in July, allowing some sales under certain conditions.
Nvidia CEO sees China as a significant market opportunity, estimating it could grow by 50% annually.
Nvidia is currently unable to sell its most powerful chips to China and is seeking U.S. government approval.
The export controls contributed to a $4 billion decrease in H20 chip sales.
Nvidia expects to deliver between $2 billion and $5 billion of H20 chips in the current quarter.
The company gets half of its data center revenue from major cloud service providers.
Nvidia's performance is significant for the stock market, as it constitutes 8% of the S&P 500 index.

Source Information

Axios

Changes proposed to Wales holiday let tax rules

August 28, 2025

The Welsh government is proposing changes to tax rules for self-catering holiday accommodations in Wales. Currently, properties must be available for rent for 252 days and occupied for 182 days annually to qualify for a lower tax rate. The new proposal suggests allowing a 182-day letting average over several years and counting charity donations towards the target.

Key Facts:

Current rules require holiday properties in Wales to be available for 252 days and let for 182 days to pay lower non-domestic rates.
The proposed change allows for an average of 182 days rented over several years.
Up to 14 days of charity-donated holiday time could count towards the 182-day requirement.
A consultation on these changes is open until 20 November.
If approved, changes could take effect on 1 April 2026.
Some groups criticize the proposals, wanting more focus on broader housing issues.
Around 60% of holiday property owners already meet the current letting requirements.
Critics argue the policy has negatively impacted tourism in Wales.

Source Information

BBC Top Stories

UK car sales to US rise following tariff deal

August 28, 2025

Sales of British-made cars to the US increased by 6.8% in July after a new tariff deal was implemented. The deal reduced US import taxes on the first 100,000 cars from 25% to 10%. This change followed a previous announcement of higher tariffs that affected the car industry.

Key Facts:

British car sales to the US rose by 6.8% in July following a tariff deal.
Previously, the US planned to impose a 25% import tax on UK cars.
The tariff was reduced to 10% for the first 100,000 cars shipped to the US.
The US market accounted for 18.1% of UK car exports in July.
The European Union accounted for 45.6% of UK car exports.
Jaguar Land Rover paused US shipments due to the initial higher tariffs.
July marked the second month of rising UK car manufacturing output, but overall output for the year remains down.
Factors affecting the UK car industry include higher labor costs, increased overseas competition, and Brexit impacts.

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BBC Business

What will the end of the 'de minimis' rule mean for U.S. consumers?

August 28, 2025

The U.S. is ending a rule that allowed tax-free imports of goods valued under $800, known as the "de minimis" rule. This change may impact online shopping and import businesses as they will now have to deal with tariffs and more customs inspections.

Key Facts:

The "de minimis" rule allowed people to avoid paying import fees on items valued under $800.
It started with a much lower threshold in 1930 and was increased to $800 in 2016.
The increase led to a rise in imports sent directly to U.S. consumers, benefiting many online retailers.
Critics claim the rule allowed unsafe or illegal items to enter the U.S. without checks.
The new changes, which suspend this rule, start with an executive order and affect package deliveries globally.
About 4 million de minimis packages were processed daily in the U.S.
Shipping services are adjusting their operations due to this rule change.
The rule was beneficial for large platforms like Shein and Temu, and smaller sellers using platforms like Etsy.

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NPR Home

After Katrina, a Mississippi businessman invests in a restaurant and in a community

August 28, 2025

A businessman named Ron Ladner invested in a restaurant and the local community in Pass Christian, Mississippi, after Hurricane Katrina caused severe damage there. He aimed to help the area recover and rebuild following the disaster.

Key Facts:

Hurricane Katrina caused major destruction in Pass Christian, Mississippi.
Ron Ladner is a business owner who invested in the town after the hurricane.
Ladner focused his investment on a restaurant and the wider community.
His efforts were part of the town's larger recovery process.
The investment aimed to support economic and community rebuilding in Pass Christian.

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NPR National

How rare earth shortages are stalling India’s burgeoning EV sector

August 28, 2025

A shortage of rare-earth metals has affected the production of Bajaj Auto's Chetak electric scooters in India. This shortage is due to export restrictions by China and is impacting the broader electric vehicle (EV) sector in India. Companies are trying to adapt by redesigning products and sourcing materials differently.

Key Facts:

Bajaj Auto's production of the Chetak electric scooter was cut nearly in half in July due to rare-earth metal shortages.
Rare-earth metals include 17 elements like dysprosium and terbium and are mainly processed in China.
China introduced export restrictions on rare-earth metals after the United States announced tariffs.
Bajaj Auto redesigned some motors to use lighter rare-earth magnets to counter the shortage.
The shortage affects the entire automobile industry in India, which relies heavily on these metals.
India’s EV sales were over 2 million in 2024, a 24% increase from 2023.
Electric car sales in India more than doubled their market share from 1% to 2.6% recently.

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Al Jazeera

Is Trump taking control of Corporate America?

August 27, 2025

The U.S. government has invested in Intel, a major chip-making company, to boost domestic technology production and lessen dependence on China. This is the largest move by the government in the private sector since 2008, sparking debate over government involvement in business.

Key Facts:

The U.S. has invested in Intel to increase chip production within the country.
This aims to reduce dependence on China's chip supply.
The move is the biggest government intervention in a private company since the 2008 financial crisis.
Supporters believe it will secure jobs and protect national security.
Critics worry about increased government control over businesses.
The article also mentions Bangladesh struggling with the costs of hosting Rohingya refugees.
Additionally, it notes that meat prices have reached record highs.

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Al Jazeera

From boom to ban: The rise and fall of India's betting apps

August 27, 2025

India has banned money-based online games, which include apps where players bet real money on games like poker and fantasy sports. The government says the ban is to protect people from gambling-related problems, but it affects a fast-growing industry that supported many jobs and businesses.

Key Facts:

India has passed a law to ban all real-money online games to protect consumers from gambling issues.
People who offer these services could face up to three years in jail and fines; users are not punished.
Before the ban, the industry had about 400 startups and contributed around $2.3 billion in taxes annually.
Companies like Dream11, once a major cricket team sponsor, have ceased their real-money operations.
The government claims online betting affected 450 million people and caused significant financial losses.
Some industry members argue the ban was imposed too quickly and without proper discussion.
The new law does not differentiate between "games of skill" and "games of chance," despite past legal decisions supporting skill games.
This is India's first national law targeting online betting, though some states already had their own bans.

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BBC World

Value of small parcels from China to UK doubles to £3bn as Shein sales soar

August 27, 2025

The value of small parcels shipped from China to the UK has risen to £3 billion, mainly because of sales from companies like Shein and Temu. These parcels often avoid import taxes under current UK rules. The UK government is looking into these rules as local businesses express concerns about unfair competition.

Key Facts:

Small parcels from China to the UK reached a value of £3 billion last year, more than double the previous year.
Companies like Shein and Temu are major contributors to this increase with their low-priced products.
Current UK rules allow small packages under £135 to avoid import taxes.
Local business owners are calling for quick changes to protect UK retailers from being underpriced by international sellers.
These Chinese parcels make up 51% of all small parcel imports to the UK, up from 35% the previous year.
Concerns include the impact on local businesses and the influx of potentially unsafe goods.
The UK government is reviewing these import tax exemptions following calls from major retailers for action.
Shein and Temu have been questioned by MPs about labor standards for their products.

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BBC Business

How tariffs are expected to shape holiday shopping sales

August 27, 2025

A Wells Fargo report suggests that tariffs on imports could affect U.S. holiday shopping by changing prices, reducing product variety, and affecting sales promotions. Retailers have adjusted their inventory strategies to manage potential tariff impacts, leading to possible higher prices and fewer choices for consumers.

Key Facts:

Wells Fargo's report discusses how tariffs might affect U.S. holiday shopping.
Retailers imported goods early to avoid higher tariff costs.
Some stores ordered less, focusing on popular items to manage expenses.
Retailers may reduce promotions instead of increasing prices on everything.
The effects of tariffs might include higher prices on items like clothes and furniture.
Holiday promotions might start earlier in September or October to spread out demand.
There may be fewer product choices as retailers aim to control costs.

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Axios

What the Cracker Barrel backlash reveals about the power of branding

August 27, 2025

Cracker Barrel started a $700 million rebranding effort that faced strong criticism from both customers and investors. The company's new design and logo were not well-received because people felt it didn't match Cracker Barrel's traditional, nostalgic image. As a result, Cracker Barrel decided to change its plans.

Key Facts:

Cracker Barrel launched a rebranding initiative costing nearly $700 million.
The rebranding included a new text-only logo and modern design changes.
Customers and investors criticized the new look as being too modern and lacking nostalgia.
Cracker Barrel is known for its nostalgic and traditional style.
The backlash led Cracker Barrel to reconsider its rebranding strategy.
A marketing professor from the Wharton School discussed the issue with Geoff Bennett.
Cracker Barrel is addressing both consumer expectations and business strategy.

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PBS NewsHour

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