📦 New Import Rule Proposal
On September 13, 2024, the Biden administration proposed changes to the "de minimis" import exemption. This rule currently allows products under $800 to enter the US without tariffs. Chinese e-commerce platforms like Shein and Temu have benefited by shipping individual items directly to consumers, avoiding bulk imports and duties. Shipments using this exemption have surged from 140M per year to over 1B in the last decade, mostly coming from China.
🇨🇳 Impact on Chinese E-commerce
The new rule targets companies using Section 301, 232, and 201 tariffs, which include Chinese goods, steel, aluminum, and solar panels. Shein, headquartered in Singapore, and China-based Temu will face stricter customs inspections and tariffs if their products fall under these categories. These changes will affect their low-cost shipping model, which has allowed them to dominate US markets.
📉 US Lawmakers' Concerns
Earlier this week, House Democrats urged President Biden to close what they called the "de minimis loophole." They argued it gives Chinese companies an unfair advantage and exposes US consumers to potentially unsafe products. US Consumer Product Safety Commission is also investigating safety concerns regarding Shein and Temu selling banned products.
💬 Statement from Commerce Secretary
"American workers and businesses can outcompete anyone on a level playing field, but for too long, Chinese e-commerce platforms have skirted tariffs by abusing the de minimis exemption," US Secretary of Commerce Gina Raimondo said. The administration’s new proposal aims to protect US workers, consumers, and businesses by ensuring that imported goods meet health and safety standards.
Will new import rules slow down Shein and Temu?
