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05.03.2025

 

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Good morning. It's Saturday, May 3, and in this weekend edition, we're covering the end of a US tariff exemption, the White House's fiscal agenda, and much more. First time reading? Join over 4 million intellectually curious readers. Sign up here.

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One Big Headline
 

Tariff Loophole Expires

The US ended a "de minimis" tariff exemption for packages from China and Hong Kong yesterday, which allowed duty-free entry for shipments of goods valued under $800. The so-called loophole was widely used by overseas online retailers, like Shein and Temu, to offer cheap products directly to American consumers. 

 

The de minimis exemption has existed since 1938 (see history), with its threshold adjusted periodically over time. The most recent change came in 2016, when the limit was raised from $200 to $800, allowing more packages to qualify for the perk. With the exemption now gone, low-value packages from China and Hong Kong are subject to new tariffs, some as high as 145%. Prices on many imported goods are expected to rise, with retailers adding tariff surcharges or shifting their business models. Temu announced it has stopped shipping products from China and will only display products shipped from its US warehouses. 

 

US Customs also faces the potential challenge of inspecting millions more packages, which could cause shipping delays. Roughly 1.36 billion shipments using the de minimis provision entered the US in fiscal year 2024, per federal data. 

 

Listen to how the end of the exemption impacts online shopping here (w/podcast). 

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Quick Hits
 

White House proposes cutting $163B in federal budget. 

The proposal would cut federal spending from nondefense discretionary programs, including those related to the environment, renewable energy, education, and foreign aid, by 23% to the lowest level since 2017. In contrast, the proposal would increase military spending by 13% to over $1T and funding for Homeland Security by nearly 65% to $175B. The plan outlines the administration's fiscal priorities and will undergo debate in Congress before any measures are enacted. See details of the proposal here.

 

CDC reports 216 child deaths this flu season, the most in 15 years.

The 2024-25 flu season has seen the highest number of pediatric deaths since the 2009-10 H1N1 global flu pandemic and surpasses last year’s total of 207 deaths. The rise coincides with a drop in childhood flu vaccination rates, which have fallen from roughly 64% five years ago to 49% this season, with vaccination coverage varying widely by state. See how the seasonal flu shot works here

 

Ireland fines TikTok $600M for sending EU user data to China.

The fine comes after a four-year investigation found the video-sharing platform's transfers of user data to China violated EU data privacy laws and lacked sufficient transparency. Ireland’s data watchdog—the EU's lead regulator for TikTok—ordered the company to fix the issues within six months. TikTok plans to appeal, arguing recent security improvements were overlooked.

 

Gregg Popovich, NBA's winningest coach, steps down as Spurs coach.

The 76-year-old Popovich stepped down as head coach of the San Antonio Spurs after 29 seasons, concluding his coaching career with an NBA-record 1,422 wins and five championships. He will continue with the Spurs as team president of basketball operations following health issues, including a stroke in November, which led to his absence for most of the 2024-25 season. 

 

Prince Harry loses bid to reinstate security on visits to UK.

Harry had tried to challenge the UK government's decision to reduce his security after he left royal duties and moved to the US. The Court of Appeal ruled the decision-making process was lawful and found no legal grounds to overturn the government's choice to provide him security on a case-by-case basis rather than automatically granting the same level of protection as senior royals.

This Week on 1440 Topics

 

Want to learn more about particular topic areas? Sign up for our weekly subject-focused emails, bringing deeply researched overviews paired with the internet's best resources straight to your inbox. Here's what's on tap this week:

 

The Novel: Explore the centuries-old practice of long-form writing, including some of history's most impactful works, in this week's 1440 Society & Culture newsletter.

 

Editor's note: The newsletter comes out at 8:30 am ET this morning; sign up before then to get it in your inbox! Our next newsletter will cover the life and works of Salvador Dali (join here). 

 

How annuities work: We're unpacking how the financial contracts, typically between an individual and their insurance company, work in this week's 1440 Business & Finance newsletter.

 

... and stay tuned for Science & Technology in the coming months!

Humankind
 

Two fathers who lost their daughters in a UK mass stabbing complete the London Marathon to raise funds in their memory. (More

 

San Diego high school students build tiny houses for homeless veterans. (More)

 

Meet the musician who went to bed one night as a street sweeper and woke up a national celebrity. (More

 

Texas basketball referees get engaged during sweet courtside proposal. (More)

 

A little sister in Pennsylvania cries happy tears when her big sister surprises her as a special guest reader at school. (More, w/video) 

 

Young girl born with heart outside her chest becomes sole survivor thanks to a surgical procedure invented for her. (More)

In partnership with StorEn

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Li-Ion batteries have been key to renewable energy’s boom. But they struggle to effectively power homes.

 

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Now you can share in their growth potential. Become an early investor in StorEn here.*

 
Humankind(ness)
 

Today, we're sharing a story from reader Holly A. in Haines City, Florida.

 

"I have been struggling lately with my own connection to others in these divisive times, with my ability to offer grace and kindness amidst so much intolerance and hate, to find my own humanity in an inhumane world. Five years ago, at the start of the pandemic, my husband and I placed plastic Easter eggs on the lawns of every home in our subdivision with a message of hope inside. I thought there was maybe someone who needed that message in that egg. 

 

So this Easter, I decided, despite my trepidation, to revive my hope eggs this time for my coworkers, leaving 120 plastic eggs all over the building with chocolate and my simple message, 'On this day and all days may you find light, hope, strength, voice, connection, compassion, peace, renewal…and chocolate.'

 

As everyone found their eggs .... people began thanking me with hugs and tears in their eyes, even people I didn’t know came to introduce themselves .... I had no idea how many people had been feeling the same way I was and how much those simple words would begin to create new connections and open hearts that were as guarded as mine. In dark times, we are tasked with finding even the smallest bit of light and sharing it with those around us. It is that tiny spark that stands to ignite not only the humanity in others but just as importantly to remind us of our own."

 

What act(s) of kindness did you experience this week? Tell us here.

Etcetera
 

Bookkeeping

> 27%: The percentage of managers globally who were engaged at work last year, down from 30% in 2023.

$340K: The approximate value of 15 pounds of gold found in the Czech Republic 

> 466 years: The age of the oldest domestic cat remains found in the US in a 1559 Spanish shipwreck off the Florida coast.

 

Browse 

A statistical analysis of the greatest karaoke songs of all time.

Ranking Europe's 50 best beaches.

> Tennessee Titans seek artists to help decorate new stadium

> The 75 most iconic "Star Wars" quotes.  

> New snail species with cubist shell named after Picasso

 

Listen 

> The history and science of low- or no-alcohol beverages

 

Watch 

How Hollywood movie cars are built

> Inside a California home made from the mountain it stands on

 

Long Read 

What was American food like before the FDA

> How understanding yourself, as the ancient Greeks advised, increases happiness, empathy, and success in modern life.

> ... and an argument for how resilience—in nature, business, and life—comes not from efficiency but from having wiggle room.

 

Most Clicked This Week: Forbes' list of the richest person in every state.

 

Historybook: Philosopher Niccolò Machiavelli born (1469); Boxer Sugar Ray Robinson born (1921); Musician James Brown born (1933); Margaret Mitchell wins Pulitzer for "Gone with the Wind" novel (1937); First bulk spam email is sent (1978).

"Now you are beginning to think for yourself instead of letting others think for you. That’s the beginning of wisdom."

- Margaret Mitchell, from "Gone with the Wind"

Why 1440? The printing press was invented around the year 1440, spreading knowledge to the masses and changing the course of history. More facts: In every day, there are 1,440 minutes. We’re here to make each one count.

 

Send us your feedback at [email protected] and help us stay as unbiased as humanly possible. We’re ready to listen.

 

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*Disclosure: This is a paid advertisement for StorEn’s Regulation CF offering. Please read the offering circular at https://invest.storen.tech/.

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