Shain's fast fashion may not be so fast under the Trump administration's new customs restrictions. The post learned that it could be a bigger problem for Chinese companies than tariffs.
President Trump is hoped to hit Beijing with 10 % of the kicking kicked on Tuesday, but his presidential order issued on Saturday promotes the scene and Chinese E -commerce Temu. The trade missing hole used to do is also closed.
The so -called De Minimis exemption allows a package of less than $ 800 to the US tax exemption. Experts now have a significant discounted apparel and other low -cost items need to pass through US customs, and large -scale intake may be more than twice the shipment time. I told the post.
“At the end of the day, it costs delay and additional costs, it can take $ 4 for a $ 2 dress,” said James Thompson, Equity Value Advisors' e -commerce expert. I am.
“If it creates too much friction, consumers may want to buy something from Amazon for easier and faster shipment time.”
Temu PARENT PDD Holdings shares dropped 5 % on Monday.
According to Wall Street Journal, customs staff need to randomly search for 1 million packages per day without exemption.
In addition, Chinese sellers have different cotton and silk tax rates, causing large -scale backlogs, so they need to fill out the items that are being sent, for example, boring forms to declare dresses.
“This is an economic earthquake, and the American Amazon sellers are pleased,” said E -commerce consultant John Elder.
China's first fashion companies use the international trade rules around 1930, so that US travelers can take them home without any hassle, and are active in exporting low -value items. I was able to increase it. According to a report released last week by Congress, their exports rose from $ 5.3 billion in 2018 to $ 66 billion in 2023.
Customs red tapes can be tacked for Shain and Tem for more than 5 to 10 days. This usually takes about a week to arrive at a US customer door.
“They do not respond like they (for the trend) as before,” said Alex King. Personal finance site generation money Former Vice President of Barclays told the post.
The price may rise due to a 10 % tariff, but even if a company passes a full cost to consumers, it is only a little hike. For example, a $ 10 dress jumps to $ 11.
Other countries around the world have similar minimum exceptions, but much less. The European Union complies with the limit of 150 euros, and the UK has reduced exemptions by £ 135.
The United States used to limit $ 200, It was raised to $ 800 in 2016 After complaining that customs staff had difficulty in examining all the packages that came in, under the former President Obama.
At the end of De Minimis, US consumers can cost $ 11 billion to $ 13 billion. Low -income consumers rely on Temu and SHEIN significantly to ultra -low -cost products. According to the New York Times。
According to James Mercer, CoreSight's global research manager, SHEIN and TEMU have recently prepared to eliminate the omission by opening a distribution center and manufacturing facilities in Mexico in Mexico.
“Shein and Temu have already adapted the model so that they are not fully exposed to customs and de minimis omissions, but they don't know how much.
In November, Temu opened a market in US sellers, and some of them offered large household items, such as electrical appliances that cost overseas, and began to open a distribution center in the United States in 2022.
“I knew that Temu and Shein could happen, so I think we started implementing plan B and C in case of the introduction of this presidential order. If they do so I couldn't see the immediate turmoil and price rise of the product chain, “said HITHA HERZOG, Chief Retailed Analyst, Chief Retailed in Parsons School of Design.
“However, if this change is not implemented, the ripple effect may occur immediately from 1-2 months.”
