US shoppers who rely on fast fashion giants Shein and Temu for affordable clothing and goods may soon see higher prices.
Starting August 29, a trade rule that allowed low-value packages to enter the United States tax-free will officially end, following a recent executive order signed by former President Donald Trump.
The rule, known as the "de minimis" exemption, let packages valued at $800 or less skip import duties if they arrived outside the international postal network, USA Today said.
This policy has been heavily used by companies like Shein and Temu, who ship massive numbers of low-cost items directly from China to American customers.
Now, those same packages will face "all applicable duties," according to the White House announcement in July.
"This order is about protecting American markets from cheap, duty-free imports," said Senator Jim Banks of Indiana, a supporter of the move.
He and other lawmakers argue that countries like China have taken advantage of the system for too long.
De Minimis Rule Change Threatens Low-Cost Shein, Temu Orders
More than 50% of all "de minimis" shipments come from China. According to a February report, over 30% of the daily volume comes specifically from Shein and Temu.
According to Mibolsillo, between 2018 and 2023, the value of these low-cost Chinese imports jumped from $5.3 billion to $66 billion, fueled largely by the rise in online shopping.
Shoppers have enjoyed deep discounts and free shipping on platforms like Shein and Temu. But with this trade loophole closing, those benefits may shrink.
Both companies said back in April that they would raise prices due to the policy change, though they haven't shared exactly how much. Some customers are already noticing slightly higher prices on common items.
The change could hit lower-income shoppers the hardest. The Cato Institute, a libertarian think tank, warned that removing the "de minimis" rule could have "far-reaching negative effects," especially for people who rely on low-cost goods.
Still, others believe the move is overdue. Supporters say it levels the playing field for U.S. businesses that follow trade laws and pay import taxes.
With the deadline just days away, shoppers are adjusting. Some are stocking up before the rule kicks in. Others are exploring new online stores for deals.
Originally published on vcpost.com
