President Donald Trump's policies could drive increased duties and tariffs on products imported from China, announced Wednesday, experts warned.
Shein, who specializes in cheap and inadequate women's clothing, and Temu, who sells clothing, household items and other muddy origins to Americans, both rely on the use of mobile phone apps to instantly access “fast fashion” and American quick consumption. Extreme discounts are the result of two policies. Rather than importing products in large quantities, it is the widespread use of slavery in China's manufacturing sector, including slaves who were jailed as part of the ongoing uyghur genocide, which, according to Congress and other verifiable sources, is the widespread use of slaves in China's manufacturing sector.
The low price and immediacy of the shopping experience made both applications extremely popular among American consumers. The scene reported record highs 2 billion dollars The profits reportedly for 2023 It was dropped Until about half of 2024 – but mostly due to competition with Temu, obviously. Pinduoduo, the parent company of Temu, totalling Net profit of $8.3 billion in 2023 based on the latest publicly available statistics.
Both earn profits at the expense of American businesses and brick and mortar facilities. For example, in March, women's clothing company Forever 21 filed for bankruptcy, saying that the fact that, as Shein and Temu do, clothing is imported into stores rather than directly, rather than directly transporting them, is a key factor in the decline.
“Certain non-US online retailers competing with debtors such as Temu and Shein have been able to pass on the exemptions and have given consumers significant savings,” said Stephen Coulombe, co-primary restructuring officer for the Forever 21 executive company. “As a result, retailers such as companies that have to pay obligations and duties to purchase products from US stores and warehouses are undercut.”
For years, two Chinese companies have not paid any obligations or duties on the freight due to the following rules known as: de minimis loopholesaid packages shipped from overseas for less than $800 do not have to pay such fees and do not need to receive the scrutiny that large imported cargo faces to ensure compliance with slavery laws. Temu and Shein's packages create great opportunities for Chinese-based companies as they are worth nowhere near $800.
President Trump has announced attempts to close de minimis The February loophole paused the process to allow US government agencies to prepare for logistics that handle large amounts of packages affected by the rules. As of this week, de minimis I'll have a loophole end May 1st. Temu and Shein will have to pay for the package from May 2nd.
But besides closing the loophole, President Trump has increased his duties de minimis The executive order package was made on Wednesday. The executive order includes a Regulations It increases Advertisement valorem Obligation rate de minimis Packages from China range from 90% to 120. These packages will increase the obligation per mail section from $75 to $100 on May 1st, and from $150 to $200 on June 1st.
“In my opinion, this amendment is necessary and appropriate to effectively address the threats to the PRC's national and economic security. [China’s] In his executive order, Trump wrote:
magazine The world of PC I explained it US Customs and Border Protection (CBP) offers the option to choose “With 90% tariff on cargo or selecting a $75 tax per item.” In any case, this increase is expected to dramatically increase the prices of China's top discount apps.
Talk to the University of Delaware Professor Shenlu's Newsweek website Conclusion Shane and Tem are “undetectable” and “are” directly and heavily influenced by Trump's policies.
“Loss with high tariffs de minimis Lu explained. As a result, given the decline in supply in the market, other fashion companies currently competing with Shein may feel that other fashion companies currently competing with Shein are confident in price increases.. ”
“There is no way for retailers or suppliers to absorb the additional costs,” Lu added.
Shein and Temu rely heavily on “influencers” from the toxic Chinese social media app Tiktok. These “influencers” technology sites are the biggest It's attracting attention We are already not preparing to use the site this week as prices are expected to rise. Verge's report preceded the latest round of increased tariffs and obligations on Chinese products.
“I love doing hauling videos and sharing affordable findings is a big part of the way I connect with my followers,” the “influencer,” identified as Donna Leah, told the outlet. “But when prices jump so dramatically, it's like killing excitement. And honestly, it makes me think again that I'll buy something.”
“I think that just because there is a reality, there will be less transport of content from Aliexpress and Shein in the future.
The mass consumption of “fast fashion” and cheap and often toxic items on Chinese e-commerce sites has been identified as a major environmental hazard. Yale University's Climate Connection Initiative It will be identified In September, the company cites “prolific manufacturing,” large-scale carbon footprints, and the use of artificial intelligence to further promote production. Meanwhile, the South Korean government announced in August that it had announced evidence of toxic substances present in products sold by Shayne and Taem, as well as Aliexpress, a competitor's Chinese e-commerce website.
Sheen and Tem are both involved in Chinese state-sponsored slavery. A 2023 report by the House Selection Committee on the Chinese Communist Party confirmed that there is a “very high risk” for Americans to purchase products that have contaminated supply chains by slavery if they sponsor any business.
The House Selection Committee of China's Communist Party, Speaker Mike Gallagher (R-WI), said “Tem has done little to free the supply chain from slavery labor.” “At the same time, Temu and Shein are building an empire around them, de minimis Loops in import regulations – dodging import taxes and avoiding scrutiny of millions of goods sold to Americans. ”
Some evidence suggests that the Chinese government has put pressure on Shayne in particular. Tuesday, Bloomberg News It has been reportedcites an anonymous source, saying that China's Ministry of Commerce is “working with Shayne and other companies to “stop diversifying supply chains through procurement from other countries.” Shane reportedly shopped potential locations in Vietnam and other regions of the country.
