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If you've been to our site lately, you may have noticed we are out of stock of more items than usual. Some of this was due to our relocation. But the extended lack of stock is due to another issue: Tariffs.
Although much media coverage has been given to the imposition of tariffs on Canada and China, Japan has also had new tariffs imposed by the Trump administration. As of August 27th, President Trump, supported by Republicans in both the House and Senate, issued an executive order entitled “Termination of De Minimis Treatment for All Countries." This imposed new tariffs upon all packages entering the US where in the past goods less than $800 were tax free.
In response, on August 27th Japan Post, along with postal services of dozens of other countries, suspended acceptance of packages with a value of more than $100 destined for the United States. This suspension has created a significant obstacle in our ability to efficiently order products from Japan in a timely and cost effective manner. Adding to this disruption in shipping, as of September 15th, all goods imported from Japan are now taxed at 15%. Let me be very clear on this:
Japan does not pay this tariff. Kikoh, an American small business, pays the tariff.
In May, the the US Court of International Trade ruled that the tariffs exceeded President Trump's authority. At the end of August, the US court of appeals ruled the bulk of President Trump's tariffs illegal. Now the issue has been appealed to the US Supreme Court which will hear arguments in November. You can read more about this here.
Tens of thousands of small family businesses in America like Kikoh are going to be hurt by these new tariffs. The De Minimis rule allowed small business like ours to compete with corporate giants and big box stores. Everything we sell will now cost more to ship, face additional fees, and cost 15% more than it did just one month ago.
We are working with our Japanese partners to put in place alternative shipping arrangements. However, so far all of these arrangements are more expensive and have additional fees we didn't contend with in August. We are not sure how we will deal with the additional costs as we move forward, as they will have a significant impact on the future of our business.
Please contact your elected leaders in Washington D.C. and ask them to reverse these damaging trade policies and burdensome tariffs that will hurt American small businesses. You can use the "Find Your Member" search at Congress.gov" to easily do so by just entering your zip code.
Thank you for your support, patronage, and patience as we work to replenish our stock as we continue to serve your needs for exquisite Japanese incense.
