De minimis: US small parcels loophole closes pushing up Shein, Temu prices
a year ago
- #e-commerce
- #trade
- #tariffs
- President Donald Trump closed a duty-free loophole for low-value packages, increasing prices for US customers of Chinese online retailers like Shein and Temu.
- The 'de minimis' exemption allowed shipments under $800 to enter the US without duties, benefiting Chinese retailers but criticized for harming American businesses and enabling illegal goods.
- Trump's executive order aims to curb synthetic opioid smuggling, citing deceptive practices by Chinese shippers exploiting the exemption.
- Shein and Temu announced price adjustments due to new trade rules, with US consumers facing higher costs.
- The UK and EU are also reviewing similar duty-free exemptions, potentially leading to price hikes for consumers there.
- Ending the exemption may not significantly curb illegal drugs but could strain US border resources further.