American small plots that will close prices for Shein and Temu

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Peter Hoskins

Business reporter

Getty images of a shein package that sits on top of a cardboard box. The package is made of white plastic with black printing. The Shein S logo is evident in the middle of the parcel.Ghetto images

A duty -free low -value door is about to be closed by President Donald Trump, raising prices for US clients of companies such as Shein and Temu.

Chinese online retail giants relied on the so -called de minimis release for sale and sending low -value positions directly to the United States, without having to pay duties or import taxes.

Door supporters, which is applied to rates of less than $ 800 (600 pounds), say she helped optimize the customs process.

But both Trump and his predecessor Joe Biden said they had damaged the American business and were used to smuggle illegal goods, including drugs.

What is the release from de minimis?

De minimis is a Latin term that literally translates as “the smallest”.

In this context, it refers to a rule of trade in the United States, which came from Congress in 1938, in order to avoid the cost of collecting only small amounts of taxes in imports.

In the 21st century, after a series of elevations, it allowed retailers to send packages worth less than $ 800 to US customers without having to pay liabilities or taxes.

Release shipments represent more than 90% of all loads entering the US, According to the customs and the border patrol of the country (CBP).

Reuters, a young woman sitting, holding a number of Shein bags.Reuters

Chinese online retailers such as Shein and Temu have benefited significantly from the door.

Both platforms have attracted millions of US customers with marketing blocks that show their ultra -low prices

And it was the release of De Minimis that helped them offer these deals so cheaply.

Shane and the Temu did not immediately respond to the BBC’s requests for comment.

However, last month, in almost identical statements, rival companies said they had observed increasing operating costs “due to the latest changes in the rules of global trade and tariffs”, adding that they would do that they would do “Price adjustments” from April 25.

Why did Trump close the door?

In February, Trump briefly closed the door.

The stopping was quickly suspended as customs inspectors, delivery companies and online retailers struggled to adapt to such a major change in the short term.

During the initial suspension of release US Post Office temporarily stopped accepting parcels from continental China and Hong KongS

Enforcement order The announcement of the last move is said to be aimed at dealing with the illegal import of synthetic opioids such as fentanyl.

It says many Chinese freight forwarders use fraudulent practices to hide illegal substances in low -value packages to operate the release from De Minimis. “

“These drugs kill tens of thousands of Americans each year, including 75,000 deaths a year attributed to fentanyl alone,” added.

According to the executive order, these packages from continental China and Hong Kong will become the subject of imported obligations from May 2 and the fee will increase next month.

The idea is not new. Last year, the Biden administration proposed rules designed to stop the “abuse” of release.

“The increasing volume of de minimis shipments is making it increasingly difficult to target and block illegal or dangerous shipments,” the message said.

This move is in line with Trump’s policies to destroy goods from China.

After returning to the White House in January, Trump imposed taxes up to 145% on Chinese imports. Its administration said in April that when new tariffs are added to existing ones, the taxes of some Chinese goods can reach 245%.

US authorities have also accused the success of companies such as the Temu and Shay for placing border authorities strains, as the number of packages entering the United States under the door has risen from about 140 million decade ago to more than one billion last year.

What does this mean to online buyers?

Even before these packages became taxes on imports, US consumers saw prices rise.

Shein and Temu have begun to set prices for their customers in the United States before the deadline of May “due to the latest changes in the rules on global trade and tariffs.”

The US Action Forum, a right -wing political group, estimated last year to get rid of release will lead to “$ 8 billion to $ 30 billion additional annual expenses that will eventually be transferred to consumers.”

Chinese online retailers have also benefited from similar rules in the UK and the European Union to reach millions of customers.

There are fears that US repression can lead to cheap goods from China’s flooding in the UK.

Undergoing the action of the US, The United Kingdom has announced a low -value importation review that enters the countryS

In the United Kingdom, this rule allows international retailers to send packages to the United Kingdom worth less than 135 pounds without obtaining import taxes.

Chancellor Rachel Reeves said cheap goods “undercut British height and British retailers.”

The European Union has also called on Member States to remove duty-free parcel exemptions worth less than EUR 150 (127.50 British pounds; $ 169.35)

And in February, the EU offered a new fee for sending parcels to the block from online retailers.

Which means that consumers in the UK and the EU can soon see a price increase.

Will US border checks change?

Packages that arrive in the United States under liberation are checked in the same way as other goods, including being checked for illegal substances. And most synthetic opioids are introduced into the country across the border with Mexico, according to employees.

Some experts believe that termination of release will do little to limit illegal drugs and not to cope with the challenges facing US manufacturers.

There are also fears that this move will create more work for US border officials who have already been stretched as they try to stop smuggling drugs.

According to the Promotion Trade Association, the National Foreign Trade Council (NFTC), the removal of de minimis release will “displace the focus of CBP away from the border where a huge majority of illegal substances and products enter the country.”

“CBP will need to hire and train new staff worthy of the agency millions or make them move agents from the already overloaded southern border,” added.

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