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    UK marketplace sellers face ‘second Brexit’ hit from Trump’s US import rules

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    Many UK-based independent sellers on marketplaces such as eBay and Amazon could suffer a significant hit to US sales from planned changes to import rules under Donald Trump, with experts comparing the impact to a second Brexit.The new rules, which mean all parcels originating or made in China and being sold into the US must pay import duty – of as much as 15% on fashion items – and an additional 10% tariff, are also expected to impact bigger online clothing retailers such as Asos and Boohoo.The changes were introduced at the start of February in an attempt to protect US retailers from a surge in competition from the likes of Chinese online marketplaces Shein and Temu, but were indefinitely paused after the US customs service struggled to cope with the massive increase in parcels requiring checks last week.However, they are expected to be implemented within the coming months, potentially driving up prices for US consumers and hitting sales for online retailers.Before the change, parcels with a value of less than $800 (£635) shipped to individuals in the US were exempt from import tax and did not pass through the usual customs checks. That scheme, originally designed to help smooth online shopping, is being revoked after it emerged that the number of shipments under the “de minimis” rules had ballooned to more than 1bn, valued at $54.5bn by 2023 – most of them from China or Hong Kong via firms including Shein and Temu.“You are looking at an increase of $30 to $50 per consignment [group of parcels],” said Brad Ashton at the advisory firm RSM. “It is creating a perfect storm for online retailers putting goods into the US market. It has a lot of the hallmarks of Brexit in terms of its potential impact on small traders.“Businesses will see their margins eroded because costs will increase. We may get to a point where the changes make a UK business uncompetitive in selling to the US.”The widespread use of Chinese factories for many British brands, particularly in fashion, means businesses such as Asos and Boohoo will be drawn in, as well as many UK independent marketplace sellers.It will not just affect goods made in China and then sent from the UK, but potentially a much wider array, as any package containing even one product made in China may have to pay import tax and pass through customs checks, further increasing costs, according to experts.There is also an expectation that the de minimis rules will eventually be scrapped for all imports, no matter their origin.About $5bn worth of parcels were exported to the US from the UK under de minimis rules in 2021, according to a Congressional Research Service analysis of data from US Customs and Border Protection. About 80% of that was estimated to be related to online retail, with fashion likely to be a large proportion of it.Chris White, at the logistics company Fulfilmentcrowd, said that during the brief period when the rules were in place in early February, one-third of the parcels it shipped to the US from the UK were found to be of Chinese origin and subject to the new taxes.Fast-fashion specialists Asos and Boohoo sell about £300m of clothing a year to the US. Both are already struggling to compete with the rise of Shein and high street retailers, which have revived after the Covid pandemic. John Stevenson, a retail analyst at Peel Hunt, said Asos and Boohoo would have to “adjust prices or take a view on [the] profitability of operating in the US”.As well as the higher tax charges, customs checks required after the rule change will add as much as two days to the processing of orders, making UK retailers less competitive with US-based operators on the speed of delivery.skip past newsletter promotionafter newsletter promotionStevenson said the hit to Asos and Boohoo was “not business-critical” in the way it could be for Shein or Temu, which he believed were heavily reliant on the tax benefit, but that it would have an impact.In the short term, online sellers will probably have lower sales because of uncertainty among US shoppers over possible taxes. White said that during the period when the new rules were in place, similar parcels were loaded with different levels of duty as local customs officers made different decisions.He said a further element of the rule change might be to expose brands that were “trading on an image of being British or European” as being “made in China and not Savile Row”, potentially damaging their appeal.There would be “lots of crossed fingers and puzzled faces” over the changes in legislation, with retailers potentially opening more US warehousing or, longer term, to switch sources of supply, White added.Boohoo closed its US warehouse earlier this year, and Asos is scheduled to close its facility there in November. However, a reversal could be on the cards if the de minimis rules are confirmed. Many fast-fashion companies have already diversified their supply chains – making more in India, Bangladesh or Turkey. Trump’s tax changes could accelerate this further.Shein is reportedly incentivising Chinese suppliers to set up in Vietnam, according to a report by Bloomberg.It is not clear when the new rules might be implemented as the US tries to put the technology and workforce in place to handle the new system. Experts say it could take weeks or months.While there is a chance that Trump will change his mind, as he has done on tariffs with Canada and Mexico, no business can bet on which way the US might jump. More

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      Woman Pleads Guilty in Covid Tax Credit Scheme That Netted $33 Million

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      A Nevada business owner prepared and filed false tax returns to fraudulently obtain Covid relief money for her businesses and others, prosecutors said.Some people binge-watched shows during the Covid pandemic. Others picked up pickleball. But according to federal prosecutors, one Las Vegas woman prepared and filed false tax returns for her business and others at a busy average rate of nearly 80 per month.Over a 16-month period beginning in June 2022, the Justice Department said Friday, the woman, Candies Goode-McCoy, filed more than 1,200 returns in order to fraudulently claim Covid-19 tax credits of nearly $100 million.Ms. Goode-McCoy, 34, who pleaded guilty under a plea agreement on Thursday in U.S. District Court in Las Vegas to charges of conspiracy to defraud the government, managed to get the I.R.S. to pay out about $33 million, prosecutors said. She took $1.3 million of that herself, they said, and received an additional $800,000 from those for whom she prepared the false returns.Ms. Goode-McCoy, who could face as much as 10 years in prison when she is sentenced in February 2026, used the money to gamble at casinos, take vacations and buy luxury cars, prosecutors said. She also purchased designer clothing from Dolce & Gabbana, Gucci and Louis Vuitton, court documents show.Her lawyer could not be reached for comment on Friday.According to prosecutors, the businesses for which Ms. Goode-McCoy prepared taxes were not eligible to receive the refundable credits in the amounts claimed.Under the plea agreement, Ms. Goode-McCoy agreed to return the most of the $33 million that was fraudulently obtained.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      5 of America’s Strangest Polling Places

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      Grab a snack, do your laundry and cast a ballot.This article is part of A Kid’s Guide to the Election, a collection of stories about the 2024 presidential election for readers ages 8 to 14, written and produced by The New York Times for Kids. This section is published in The Times’s print edition on the last Sunday of every month.Every Election Day, millions of adults line up to vote at schools, community centers, libraries and other public buildings. But sometimes election officials don’t have enough places. To make sure everyone is able to get to a polling location that’s convenient, officials have to get creative, asking local business owners to lend space. Here are five unusual spots where Americans will pick the next president.Wash, Dry, Fold, VoteThe City of Chicago doesn’t own a building in the neighborhood of Chicago Lawn, so Wash Smart Laundry is helping out by tucking polling booths among the washers and dryers. It’s making it easier for people in the area to cast their ballots. And it has been good for business, too, says Andrea Castillo, the manager. New customers have been coming in after hearing that they can do their laundry and their civic duty at the same time. But occasionally they get a little confused: When they’re asked to show their ID to vote, some people accidentally show their laundry card instead.Presidents and PastriesDuring the 2020 election, early in the pandemic, San Francisco officials wanted to spread out polling stations to reduce crowds. So they asked La Boulangerie, a cafe and bakery, to donate space, and things worked out so well that the place decided to keep doing it. This will be the third time half the cafe is emptied out to squeeze in six voting booths. Jennifer Cusguen, a manager, says the staff likes helping the community by making it easier to vote. And they’ve learned an important lesson: Voters love almond croissants. This year, they’ll stock extras so they don’t sell out again.Tomi UmWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Want to Understand America? Watch ‘Shark Tank.’

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      One day in late June, a panel of investors entertained business ideas from around the country. A kitschy advent calendar. A fancy mini-fridge for drinks. A flashlight that emits beams from multiple angles. A machine that grows mushrooms. Bendable cups. Pet plants (for you, not your cat). This was the Los Angeles set of “Shark […] More

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      in US Politics

      Ohio residents flock to Springfield’s Haitian restaurants: ‘They are family’

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      The line down the center of the Rose Goute Creole restaurant on Springfield, Ohio’s South Limestone Street is halfway out the door. It’s been like this ever since former president Donald Trump falsely accused immigrants in Springfield of eating cats and dogs during a televised debate on 10 September.At the back of the restaurant, kitchen staff scramble to take orders and load plates of herring patties, rice and beans, and barbecued chicken legs on to serving trays. Outside, cars with plates from Georgia, Wisconsin and Indiana – diners who’ve stopped off a nearby highway to show support for the Haitian community – fill the parking lot.It’s a partly chaotic scene, as Dady Fanfan, a 41-year-old from Plaisance in northern Haiti, stands inside the door, greeting diners as they enter, before slipping away to clear nearby tables.“One day I came to the restaurant to buy something, and I saw there was a lot of people,” says Fanfan, who despite not knowing the restaurant owners personally is this week spending his free time helping his countrymen and women. “I just stayed a little bit to help them, and then the next day I came because they are family.”As Trump and JD Vance, the Republican vice-presidential candidate and Ohio senator, continue to spread false information about Haitians in Springfield, regular people from the city and beyond are taking it upon themselves to seize back the narrative around immigrants in the Ohio city.And the outpouring of support aimed at countering Trump’s damaging comments hasn’t been limited to volunteering.Many community healthcare centers and support organizations that have been assisting Haitians in Springfield for several years are reporting increased donations and contributions coinciding with the furor of the past 10 days.“In the last three days, we’ve taken cash donations about seven times the normal rate, and it’s specifically because of this polarization,” says Casey Rollins, executive director of Springfield’s Society of St Vincent de Paul. She says the money is then transferred to gift cards to be used by those in need at a local international grocery store.Unlike his party colleagues, Ohio’s Republican governor, Mike DeWine, has come out in strong support for the Haitian community, urged Trump and Vance to end their “very hurtful” comments and pledged $2.5m over two years to assist healthcare organizations in Springfield.“I’m just trying to make it easier for them to go through the firestorm that they’re in,” says Sammy, who drove her Yamaha motorbike 176 miles (283km) from Cleveland last Saturday and pulled into the parking lot of the Haitian Community Help and Support Center without knowing a single person in town. Seeing the threats and hate for Springfield’s Haitians online and having served in the army, she wanted to help protect people she saw as innocent victims.“I believe that America does best when it is one community standing up for, protecting and in solidarity with another,” she says.Sammy, who asked not to be fully identified as she is a trans woman in the process of changing names, says she’s seen supporters bring fresh garden vegetables, perform yard work around the center, and drop off furniture and office supplies.“It’s been one of the most American experiences of my life,” she says.“It’s humbling.”As Sammy speaks, JoAnn Welland, 79, from the neighboring town of Enon, walks by the front of the center, asking where she can donate.“The people who are coming here [from Haiti] have sacrificed so much to come, and Springfield, in my opinion, is a lovely town,” she says. Welland says she was motivated to get into her car and drive to the Haitian community center to donate after hearing the lies on television about Haitians eating pets.skip past newsletter promotionafter newsletter promotion“Then, I heard that the town hall got a bomb threat, the elementary school got a bomb threat. The hatemongering, that’s wrong. That’s ugly and negative and hateful. This is my way of standing up for truth,” Welland says.But even as Welland speaks, across town three supermarkets are abruptly evacuated and closed due to bomb threats, dozens of which have set the town on edge since Trump singled out Springfield during last week’s debate. One Springfield elementary school saw around 200 children absent from classes on Tuesday due to security concerns and bomb threats, which largely have been found to be hoaxes.Earlier this week, CultureFest, a fall festival beloved by locals, was canceled to “prevent any potential risks” to attendees. A debate involving local politicians up for election has also been canceled.Springfield’s Republican mayor, Rob Rue, has pleaded for both presidential candidates not to come to the town, saying it would place an extreme strain on the city’s already stretched resources. Despite that, at a rally in New York on Wednesday, Trump said he’d travel to Springfield in the coming weeks.Back at the Rose Goute Creole restaurant, the stream of customers keeps coming. Orders stack up as hungry Haitian workers wearing T-shirts depicting their employers dart over to the counter to collect their orders before scampering back out the door.And Fanfan isn’t alone. Amanda Payen hands out free bottles of water and asks diners if they’re being served. Her husband, Jacob, who’s from Port-au-Prince but lived in Florida for decades before coming to Springfield, thanks diners for coming in as they leave.None are employees of the restaurants, but as Haitians, they want to help.“I’ll come back again tomorrow,” says Fanfan, “and if I see they need help, I’ll stay.” More

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      in Elections

      New York City Truckers Aim to Challenge Congestion Pricing Policy

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      The industry that moves nearly 90 percent of goods within the city is suing to challenge the policy, claiming it unfairly burdens their business.With a month left before drivers start being charged to enter Midtown and downtown Manhattan under New York City’s congestion pricing plan, a new group of challengers is joining a crowded field of critics: truckers.The Trucking Association of New York, a trade group representing a wide range of delivery companies, filed a lawsuit on Thursday seeking to delay the policy, claiming that it would unfairly charge vans and trucks that enter the new tolling zone as much as $36 per trip during peak hours. That cost, the group says, could soon be passed on to local businesses and consumers.“We’re not pushing back on the overall program,” Kendra Hems, the group’s president, said. “It’s simply the way that trucks are being targeted.” The suit was filed in federal court in Manhattan.The congestion pricing plan, scheduled to start June 30, will charge fees to most vehicles entering Manhattan on or below 60th Street. Passenger vehicles entering the zone will be charged up to $15 once a day, with some exceptions. Commercial trucks will be charged $24 or $36 per entry, depending on the size of the vehicle and the time of day.Transit leaders have already built in a 75 percent discount on tolls during off-peak hours, from 9 p.m. to 5 a.m. on weekdays and 9 p.m. to 9 a.m. on weekends. But Ms. Hems said that was inadequate, because customers often dictate that deliveries must be made during daytime shifts. The trucking association is seeking lower or less frequent tolls.The program has already raised the ire of critics including the governor of New Jersey, a teachers’ union, the Staten Island borough president and some residents of Battery Park City in Lower Manhattan. With this latest complaint, eight lawsuits challenging the rollout have been filed.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      New York Must Figure Out How to Fix Cannabis Mess, Hochul Orders

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      Gov. Kathy Hochul ordered a review of the way New York State licenses cannabis businesses after calling the sluggish rollout of legal cannabis a “disaster.”Gov. Kathy Hochul has told New York officials to come up with a fix for the way the state licenses cannabis businesses amid widespread frustration over the plodding pace of the state’s legal cannabis rollout and the explosion of unlicensed dispensaries.The governor has ordered a top-to-bottom review of the state’s licensing bureaucracy, to begin Monday — weeks after she declared the rollout “a disaster” and called off a Cannabis Control Board meeting when she learned the body was prepared to hand out only a few licenses.The main goal of the review, to be conducted by Jeanette Moy, the commissioner of the Office of General Services, is to shorten the time it takes to process applications and get businesses open, officials said.The state Office of Cannabis Management, which recommends applicants to the board for final approval, received 7,000 applications for licenses last fall from businesses seeking to open dispensaries, grow cannabis and manufacture products. But regulators have awarded just 109 so far this year. The agency has just 32 people assigned to evaluate the applications.Ms. Moy has “a proven track record of improving government operations,” the governor said in a statement, and will provide a playbook to turn around the cannabis management office “and jump-start the next phase of New York’s legal cannabis market.”In an interview, Ms. Moy said her goal was to work with the cannabis management office “to identify ways in which we can support them as they look to streamline and move forward some of the backlogs and challenges that may be faced in this industry.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      New N.Y. Law Mandates More Transparency in Credit Card Surcharges

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      The state law, which goes into effect Sunday, requires businesses to include any surcharges in the prices listed for the products or services they sell.A new law going into effect on Sunday will require businesses in New York to clearly post the cost of purchasing items with a credit card, including any surcharges being imposed, for customers before checkout.The law, signed by Gov. Kathy Hochul in December, also prevents businesses from imposing more in credit card surcharges than what they are charged by processing companies.Businesses can choose either to solely display the higher credit card price for the products or services they sell or to list both the credit card price and the lower cash price for the items.The new disclosure requirements will “ensure individuals can trust that their purchases will not result in surprise surcharges,” Ms. Hochul said in a statement this week.“Transparency is crucial in building trust between businesses and communities, and now patrons will be empowered to budget accordingly,” she said.In New Jersey, Gov. Philip D. Murphy signed a similar law last year requiring merchants to notify consumers before checkout about the amount of any credit card surcharges to be applied. It also prohibited merchants from charging consumers more than the processing fee the businesses paid.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      The Squeeze on British Businesses Is Not Letting Up Soon

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      Company insolvencies hit a three-decade high, with businesses under pressure from high debts, prices and interest rates. The Bank of England held rates steady on Thursday.Britain’s economy faces a bracing fact: The number of companies that folded last year was the highest in three decades.More than 25,000 companies registered as insolvent in 2023, the most since 1993, according to government data published this week. As pandemic-related support measures for businesses ended, the wreckage from years of high debt and interest rates, soaring prices and a cost-of-living crisis become clearer. Insolvencies have spread from small to larger businesses, analysts said.Businesses still dealing with relatively high costs, demands for higher wages, supply chain uncertainties and wavering consumer confidence are hoping for brighter economic times. Slower inflation, stronger growth and cuts to interest rates are expected to come this year, but not soon.On Thursday, the Bank of England held interest rates at 5.25 percent, the highest since 2008, and where they have remained since August, after rising from just above zero in a series of increases over a year and a half.Policymakers said inflation had declined, including wage growth and services inflation, but some measures of persistence remained “elevated.” Two members of the nine-person rate-setting committee voted for a quarter-point rate increase, while one voted for the first time to cut rates.There has been good news on inflation, “but we have to be more confident that inflation will fall all the way back to the 2 percent target and stay there,” Andrew Bailey, the governor of the bank, said on Thursday. “We are not yet at a point where we can lower interest rates.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More