China’s popular e-commerce brands such as Shein and Temu have been hit hard by the Trump Administration closing a trade loophole and imposing hefty tariffs, according to a report by Straight Arrow News, which said prices of imports from China valued under $800 will soar from Friday (May 2).
These items – often clothes – were previously exempt under the “de minimus” rule that drew a flood of packages to the United States from China in recent years, but they will now be subject to a tax “equivalent to 120% of a product’s value, or a minimum fee of $100 per package.”
“Both Temu and Shein have already begun passing these additional import costs on to consumers,” the report said, adding that an analysis of over a dozen of Temu’s best-selling items “shows that the new taxes often exceed the value of the products themselves and more than doubles their cost.”
Shein has also raised its prices in the US significantly, and some items have seen increases of over 300%, it said.
The two companies had seen this problem coming and Chinese suppliers shipped a lot of goods to warehouses in the US in recent months. So, products already stored in the US should not face those price hikes, but once that inventory is sold, all goods are likely to face the additional cost.
Read the full report: Straight Arrow News.
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