Here is the summary article:
President Donald Trump’s new tariffs on China, Canada, and Mexico target a trade provision that has fueled the growth of budget online retailers, including Temu and Shein. The tariffs, which take effect on Tuesday, are part of an executive order imposing a 25% tax on goods from Canada and Mexico and a 10% tax on goods from China. The measures halt a trade exemption known as “de minimis,” which allows exporters to ship goods worth less than $800 to the US duty-free.
The de minimis provision, which has been in place since the 1930s, has come under scrutiny in recent years due to concerns over product safety and its impact on the US market. The US processed over 1.3 billion de minimis shipments in 2024, up from 139 million in 2015. Low-cost e-commerce companies like Temu, Shein, and Alibaba’s AliExpress have particularly benefited from the loophole.
Temu and Shein have gone on a digital marketing blitz to attract more customers, and they have expanded their strategies to include onboarding Chinese sellers with inventory in US warehouses and opening supply chain hubs in the country. Amazon, eBay, and Etsy may benefit from the clampdown on the de minimis loophole, as it could give them an edge over competitors like Temu and Shein.
