US takes aim at Shein and Temu with new import rule proposal

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US takes aim at Shein and Temu with new import rule proposal
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The Biden administration is addressing an import exemption companies use to avoid tariffs when shipping products from China to the US.

The Biden administration is addressing the “de minimis” exemption that it says some Chinese e-commerce companies “abuse” to ship products under $800 to US customers without tariffs. New rules proposed on Friday subject certain shipments from China to closer inspection and tariffs — a move that will affect products sold by ultralow-cost retailers like Shein and Temu.

In addition to slapping these shipments with tariffs, the rule change would subject them to closer inspection by US Customs and Border Protection. Earlier this week, House Democrats wrote a letter to President Joe Biden, urging the administration to close the de minimis “loophole.” Safety regulators have also called on the US Consumer Product Safety Commission to investigate Shein and Temu over concerns they sell dangerous products banned in the US.

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