Make Way for Premium Shopping: US's Updated Rules Hamper Budget-Friendly Chinese Retailers like Temu and Shein
Amended US customs regulations pose challenges for businesses like Temu and Shein.
No more easy transactions for Temu, Shein, and their peers! The recent trade war truce between China and the US has resulted in a decrease in duties, but a stringent rule continues to give Chinese online retailers a tough time. Previously, they enjoyed duty-free shipping of goods under $800, a perk that has been revoked since early May. Now, a minimum fee of $100 is due per package, with a hefty 120% duty rate.
With President Trump's latest move, the duty rate has been reduced to 54 percent, but the minimum fee remains unaffected. Come June 1st, it's set to increase to $200 per package, as per a presidential decree. This new regulation will certainly affect US consumers who rely on affordable goods from Temu, Shein, and co. The good news is that online retailers might find it more cost-effective to store articles in US warehouses and sell them locally.
Why the sudden crackdown? US retailers have long argued that the duty-free de minimis rule for shipments under $800 is an unfair advantage for Chinese online competitors. Trump also points out that this route is used for smuggling dangerous substances like Fentanyl. As a result, Chinese online retailers have taken to raising their prices in the US to offset the loss of the exemption.
Sources:
- ntv.de
- jog/dpa
In the new US regulations, nearly all imports from China are subject to tariffs, with a rate of 30% for most products[2][3]. However, low-value shipments with the USPS can take advantage of a flat-rate option of $100 per package, bringing the effective tariff rate down to as low as 12.5%[1]. This option is not applicable for commercial carriers like DHL, FedEx, or UPS, which will face the default 30% tariff rate[1]. Additionally, the end of the de minimis exemption means that all shipments now require complete customs entries, duties, and compliance data, leading to increased landed costs and slower clearance times[2][3].
- China
- USA
- Donald Trump
- Trade Conflicts
- Duties
- The updated community policy regarding duties, such as the revocation of duty-free shipping for packages under $800, has created a challenging employment policy for Chinese online retailers like Temu and Shein, thereby impacting the business sector.
- The employment policy of these budget-friendly Chinese retailers may undergo changes due to the latest politics, as they now have to pay a minimum fee of $100 per package, with a 120% duty rate, which will make their goods less affordable in the general-news milieu.
