Ending de minimis loophole could hit Shein, Temu more

President Donald Trump recently revoked the duty-free de minimis rule for all US imports valued at $800 or less. Though China and its low-cost brands like Shein and Temu had the tariff exemption revoked in May, the new order could further hit their sales.

The de minimis exemption for global goods ends August 29. It was first suspended for China and Hong Kong, but now applies to all countries.

It closes the alternative shipping routes and raises costs for retailers and potentially consumers. Shein has already hiked up US prices of some of its products by up to 377% a few months back.

The trade policy change targets a massive volume of global trade. US Customs and Border Protection processed 1.36 billion de minimis packages last fiscal year—nearly 4 million per day—most of them from China and Hong Kong.

Research by UCLA and Yale economists shows that ~48% of these shipments were sent to America’s poorest ZIP codes, compared to 22% going to the wealthiest.

Analysts say ending de minimis could shake up global ecommerce and US shopping habits.