When Jon Calma Vagara’s packages made a dramatic return to his doorstep in Singapore, he realized that had just become the unwitting star of a new tragicomedy. Spoiler alert: it didn’t have a happy ending.
Running JCV Custom Works, Vagara dabbles in the fine art of 3D printing, selling stencils for fishing lures since 2019. Fun fact: almost all his orders go to the US. Because apparently, Americans need their fishing game to be top-notch.
Fast forward to late August, when the US decided to throw a curveball by dumping its de minimis exemption on small-value imports. In other words, shipping from Singapore to America became as straightforward as a Rubik’s Cube underwater. Naturally, Singapore’s national postal service promptly hit the brakes on sending parcels stateside. So, Vagara, in a desperate act of heroism, opted for a private courier, only to discover that his packages were enjoying an extended staycation in Singapore.
“I kept calling, and they assured me my goods were already in the US,” he muttered to Business Insider while sipping on what was probably a cup of disappointment. “Three weeks later, they returned everything. I was very angry.” Sounds like a plot twist no one saw coming, right?
After navigating this postal Bermuda Triangle, he found another courier, who miraculously cleared the extra paperwork and allowed his parcels to escape Singapore in about a week. But here’s the kicker: while he used to charge a mere $15 for shipping, he’s now gouging US customers for $25. That’s a 66% increase, enough to make a price-sensitive fish reconsider their lure.
But wait, there’s more! Vagara now must wade through the murky waters of Harmonized Tariff Schedule codes—a task that’s as banal as it is critical. Once a ‘meh’ formality, it’s now the key to determining tariff rates on each of the four to five parcels he ships weekly, each totalling between $200 and $400. “In the past, I didn’t have to declare the HTS code. Now it’s important,” he remarked, with all the enthusiasm of someone reading a tax code at 3 AM.
While his products are finally reaching buyers again (cue the world-famous victory dance), his profits have taken a nosedive—about 10% to 15% down the toilet. Plus, he’s had to introduce a pesky minimum order of $50 to keep his business afloat. Nothing like a financial lifebuoy that’s also a lead anchor!
The Hidden Costs of Tariffs
Interestingly enough, Vagara’s stencil sales aren’t his main gig. By day, he’s in the glamorous world of interior design, with his side hustle providing a delightful 20% to 25% of his monthly income—somewhat akin to having a second job as a clown at children’s parties, but with fewer balloon animals.
His saga showcases a larger theatrical production: tariffs are rarely the only nemeses. No, they’re more like the opening act to a concert of chaos featuring failed shipments, customs holds, and surprise inspections, all while like waiting for a Netflix show to buffer.
According to Shana Wray, a solution architect at supply chain intelligence firm FourKites (sounds fancy, huh?), the downstream effects can cause US Customs to develop a flair for the dramatic with increased inspections for HTS codes. “Once that happens, the goods are frozen at the airports or ocean ports,” she explained. Imagine your shipments chilling in a customs lounge, sipping piña coladas while you wonder when you’ll see them again.
Larger companies can negotiate with the finesse of a skilled diplomat, whereas smaller enterprises can only hope their packages don’t end up in the lost-and-found of the shipping world. Vagara’s shipping was once a flat rate, but tariffs have turned that into a game of ‘how much more can I charge you?’ His customers—many of whom are likely Trump supporters sending him good vibes via social media—have surprisingly kept ordering. Ah, the wonders of political loyalty!
Contracts Won’t Save You
Just when you thought it couldn’t get worse, many firms are discovering that even contracts—those sacred scrolls we trust—won’t save them from this financial nightmare. Tariff hikes rarely qualify as force majeure, the legal equivalent of finding a unicorn in your backyard.
“Most contracts won’t give you the right to damages just because tariffs changed,” cautioned Kala Anandarajah, a trade lawyer who probably has more legal jargon memorized than any human should. “It’s not as simple as that!” Ah, the sweet smell of bureaucracy.
While big corporations can shift their manufacturing to dodge the tariff grind, small businesses like Vagara’s can only grip their wallets tighter, hoping customers don’t notice the price hike— or worse, decide their allegiance to lower prices outweighs their love for lure-making.
In an ironic twist, he’s noticed that the increase in shipping has somehow made customers happier—possibly because their precious lures are reaching them a bit faster. But for Vagara, this comedy of errors continues to punch down on his small business.
“I’m just hoping that after Trump’s term is done, it goes back to normal,” he lamented, wishing on a shooting star that shipping could return to the good old days where everything wasn’t a logistical circus.
