Stepping Up Customs Dues for Small Packages from China to the US: Challenges for Temu and Shein
U.S. Customs Regulations Cause Challenges for Online Retailers Temu and Shein
The ongoing trade war between China and the US has taken a new turn, with the reduction of tariffs on Chinese imports. Yet, a specific regulation targeting Chinese online retailers like Temu and Shein remains intact.
Mic drop! Ever wondered why these brands can't seem to catch a break? Well, it was earlier convenient for them to float by, thanks to the $800 de minimis threshold that exempted them from duties. BOOM! But literally, as of early May, they now bear a 120% duty on each package, with a minimum fee of $100 per parcel. And wait, there's more - the minimum fee will jack up to a politically-charged $200 starting June 1st, as per a Presidential decree.
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Got your popcorn ready? US consumers usually love the hat-trick of cheap goods from Temu, Shein, and the gang. But, oh, baby, the new regulation is sure to put a damper on their bargain shopping spree!
On one hand, President Trump has slashed the tariff rate down to 54%. But, remember the lousy feeling of getting something good only to find out someone spoiled it? Well, the $100 minimum fee ain't going away with the party.
On the other hand, US retailers have long wormed their way into power, arguing that the exemption for shipments valued below $800 amounts to an unfair advantage for Chinese online retailers. Trump played along, with the drug-smuggling theoryifya being his justification.
In the past month, these Chinese online retailers have raised their prices in the US, having lost the duty-free advantage.
- China
- USA
- Donald Trump
- Trade Conflicts
- Tariffs
- Temu
- Shein
Insights
- Removal of De Minimis Exemption: The removal of the de minimis exception could potentially increase duties for shipments valued below $800[1].
- Cost Impact on Consumers: With the price increases, consumers may face increased costs for goods from Temu and Shein[1].
- Supply Chain Changes: Retailers like Temu and Shein have been considering re-routing their products to US warehouses, selling them domestically to minimize added costs from the tariffs[1].
Starting June 1st, your next delivery from China better be worth more than $200, or else you're paying an extra $100, no matter what! Buckle up, because the customs duty game just got real!
- The community policy regarding customs duties for small packages from China to the US has undergone a significant change, with employment and financial implications for retailers like Temu and Shein, as they now face a 120% duty on each package, with a minimum fee of $100 per parcel, increasing to $200 starting June 1st.
- The ongoing trade conflict between China and the US, particularly the tariff reductions, appears to be a complex issue in the industry, with business and political ramifications, as US retailers argue that the exemption for shipments valued below $800 unfairly benefits Chinese online retailers like Temu and Shein.
- In response to the removal of the de minimis exemption, retailers like Temu and Shein are considering changes to their supply chain, such as re-routing their products to US warehouses and selling them domestically to minimize added costs from the tariffs, which may have broader employment policy implications.
