Shein and Temu prices to rise as US closes small parcel loophole
Summary
President Donald Trump is ending a tax exemption for low-value packages entering the U.S., which may lead to increased prices for customers of Chinese online retailers like Shein and Temu. The exemption, known as "de minimis," previously allowed items valued under $800 to be sold and shipped to the U.S. without import duties or taxes.Key Facts
- The "de minimis" exemption meant packages under $800 in value weren't taxed upon entering the U.S.
- Shipping companies like Shein and Temu have been using this rule to sell goods cheaply to U.S. customers
- More than 90% of all items entering the U.S. use this exemption, according to the country's Customs and Border Patrol (CBP)
- President Trump and his predecessor, Joe Biden, think this exemption is harmful to American businesses and is being used to smuggle illegal goods into the country
- The exemption was briefly stopped in February, then resumed due to complications from the sudden change
- Import duties will be applied to packages from mainland China and Hong Kong starting 2 May
- A decade ago, about 140 million packages entered the U.S. under this rule, but last year that number rose to over one billion
- Since returning to office in January, President Trump has imposed high taxes on Chinese imports.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
