President Trump's executive orders ending the de minimis exemption for low-value goods from China will significantly impact fast-fashion companies like Shein and Temu, potentially leading to shipping delays, price increases, and a shift in consumer preference.
President Trump is expected to impose a 10% tariff on goods from China , effective Tuesday. However, a more significant blow to Chinese e-commerce giants like Shein and Temu may be the end of a trade loophole known as the de minimis exemption. This exemption allowed packages valued under $800 to be shipped into the US duty-free. Trump 's executive orders, set to take effect tomorrow, will eliminate this rule, forcing heavily discounted apparel and other low-cost items to go through US customs.
This could result in shipping times more than doubling, as customs officials will need to inspect an additional 1 million packages daily – the volume typically sent by Shein and Temu. The Chinese sellers will also face increased paperwork requirements, including declaring the material composition of each item, leading to potential backlogs. This change is expected to cause a major disruption in the fast-fashion industry, with experts predicting delays, price increases, and a potential shift in consumer preference towards domestic sellers like Amazon. While Shein and Temu have been preparing for this by establishing distribution centers in the US and manufacturing facilities in Mexico, the full impact of the de minimis exemption's elimination remains to be seen. Some analysts believe the companies have implemented contingency plans to mitigate the effects, while others warn of potential supply chain disruptions and price hikes in the coming months. The end of this loophole could cost American consumers between $11 billion and $13 billion, particularly impacting low-income consumers who rely on these platforms for affordable goods
Trump Tariffs Shein Temu De Minimis E-Commerce China US Customs Supply Chain Fast Fashion
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