Vinyl records, CDs and cassettes will remain exempt from US tariff changes

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Vinyl records, CDs and cassettes will remain exempt from US tariff changes

The US Customs and Border Protection has confirmed that vinyl records, CDs and cassettes will be exempt from tariff adjustments in the US.

Changes come following President Donald Trump’s return to the White House at the start of the year, where he signed an executive order to impose tariffs on imports from a number of countries.

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International businesses shipping to the US will now be subjected to different import taxes, with the amount depending on various deals that have been decided in recent months. Companies from the UK will now pay around 10 per cent of the product’s value in tax, while sellers across the rest of Europe are subjected to fees of around 15 per cent.

On Friday (August 29), it came into effect that “de minimis” goods imported to the United States – goods which have a value of under $800 (£590) – will no longer be exempt from import taxes.

That being said, it was confirmed by the US Customs and Border Protection agency on their website that products classed as “informational materials” – including books, magazines, and physical music products – will be exempt from the “de minimis” rules.

With the exemption, CDs, vinyl, cassettes and more will no longer be affected by the tariff changes; however, other pieces of music merchandise, including posters and clothing, will.

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BBC News reports that the new tariffs will cause increased checks at the United States border. This is likely to lead to customers expecting shipments to face delays, and has already led to some retailers no longer shipping to the US.

To work around the changes to tariffs, some companies are encouraging sellers to opt for Direct Duty Paid shipping (DDP). This means that the taxes, import duties, and tariffs are all paid for by the customer.

One of the companies pushing for this is Bandcamp, which shared a new set of guidelines for sellers to help understand and work in accordance with the changes to US tariffs. These changes, as highlighted by MixMag, encourage users to update their shipping costs to reflect the tax changes, and ask sellers to correct the HS codes on the customs forms so buyers can track their orders.

Discogs has followed suit by sharing a new guide to the tariffs, and warned that while the changes are first implemented, there will likely be some issues with orders while it “adjusts to the new requirements”.

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While businesses in the UK face fees of around 10 per cent of the product’s value, others will be taxed at a much higher rate, with China at around 54 per cent, Vietnam at 46 per cent, and Japan at 24 per cent.

In April, Trump said the measures were payback for unfair trade policies, adding that he had been “very kind” in his decisions. While he expressed confidence that the move will “make America wealthy again”, the news quickly triggered a slump in the global stock market – with US markets having their worst day since COVID-19, according to BBC News.

When the changes were announced this spring, China also retaliated by announcing plans to add an additional 34 per cent tax on all imports from the US.

The impact of the tariffs on the music industry was prominent soon after the executive order was signed by Trump. Radio giants including iHeartMedia, Cumulus Media, and SiriusXM all saw their stocks drop, and streaming and podcast companies also took a hit, with LiveOne – which is behind several music and podcast services – dropping by nearly 13 per cent.

The film industry has come under strain due to the changes too, with the President announcing in May that he would be authorising 100 per cent tariffs on films made outside of the United States.

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