President Trump's new tariffs on Chinese goods, coupled with the suspension of a de minimis customs exemption, could significantly impact the pricing and availability of ultra-cheap clothing from retailers like Shein and Temu. This move may also benefit Amazon, which is directly competing with these Chinese e-commerce giants.
Ultra-cheap clothing from China could become more expensive under President Trump's new tariffs, potentially giving Amazon an edge over overseas competitors. A 10% tariff on all Chinese goods took effect on Tuesday, the same day President Donald Trump agreed to a 30-day pause on tariffs against Mexico and Canada. In addition to the 10% levy on Chinese imports, Mr. Trump's executive order also suspended a lesser-known customs exemption that allowed goods valued under $800 to enter the U.S.
duty-free. This order disrupts the business models of China-based retailers like Shein and Temu, which previously were exempt from tariffs and customs inspections thanks to the de minimis loophole. The rule change is also likely to result in delivery delays as packages now need to go through customs, Juozas Kaziukenas, founder of e-commerce intelligence firm Marketplace Pulse, told the Associated Press. Neither Shein nor Temu responded to requests for comment on how the new rules would affect their businesses. The de minimis exemption enabled these Chinese e-commerce giants to maintain low costs and attract young American consumers with trendy styles at incredibly low prices. They ship directly to consumers, allowing them to compete with domestic players, including Amazon, which launched its own competitor to Temu and Shein last year, called Amazon Haul. Available exclusively on the Amazon app, Amazon Haul features goods shipped from China priced under $10 and sells items similar to those offered by Shein and Temu.How much could prices rise? As Shein and Temu now face existing duties they previously avoided, plus the new 10% tariff imposed by Mr. Trump, and potentially additional taxes collected by customs authorities, these added costs could be passed onto consumers. While price increases may be minimal, some shoppers might be deterred by shipping delays caused by mandatory customs inspections. 'If the tariffs stick, we could see higher prices on electronics, clothing and other things,' Ryan Young, senior economist for the Competitive Enterprise Institute, an advocacy group that promotes less regulation, told CBS MoneyWatch. 'There will be frustrating delays, and this will put a damper on Temu, Shein and other low-cost vendors' business models.
Tariffs China Shein Temu Amazon E-Commerce Retail Consumer Prices
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China responds with tariffs on US goods after Trump's tariffs on Chinese imports take effectChina imposed tariffs on some U.S. imports in response to new tariffs President Donald Trump put on Chinese goods beginning shortly after midnight on Tuesday.
Read more »
Trump tariffs: What do Trump’s executive orders say on tariffs and how would they work?President Donald Trump is using a trio of executive orders to throw the world economy and his own goal of cutting inflation into turmoil.
Read more »
Canada Threatens Retaliatory Tariffs on US Goods if Trump Imposes 25% TariffsCanada is considering retaliatory tariffs on American products if President-elect Donald Trump follows through on his threat to impose 25% tariffs on all Canadian goods.
Read more »
Canada Retaliates Against Trump Tariffs with $155 Billion in Tariffs on US GoodsCanadian Prime Minister Justin Trudeau announced retaliatory tariffs on $155 billion worth of American goods in response to President Donald Trump's imposition of tariffs on goods from Canada, Mexico, and China.
Read more »
Canada Imposes Retaliatory Tariffs on US Goods in Response to Trump's Fentanyl TariffCanadian Prime Minister Justin Trudeau announced retaliatory tariffs against the US in response to President Donald Trump's tariffs on Canadian imports. Trudeau stated that Canada will be imposing 25% tariffs on $155 billion worth of American goods, with immediate tariffs on $30 billion worth of goods starting Tuesday and further tariffs on $125 billion worth of products in 21 days. These tariffs come after Trump implemented 25% tariffs on Canadian goods imported to the US, citing efforts to curb the fentanyl crisis.
Read more »
Trump Imposes 10% Tariffs on Chinese Goods, Sparking Economic ConcernsUS President Donald Trump has imposed a 10% tariff on Chinese goods, citing Beijing's failure to curb fentanyl flow into the US. This move, coupled with existing tariffs, is projected to significantly impact China's economic growth, fueling calls for more robust stimulus measures. China, while vowing countermeasures, has yet to disclose specific retaliatory actions.
Read more »