Shein and Temu products-expensive as tariffs
Shein and Temu products get more expensive as tariffs go into effect
Cheap clothing and products from Shein, Temu and other Chinese online retailers are getting more expensive as tariffs go into effect.
The Trump administration closed a "de minimis" loophole early Friday that previously allowed for "low value" packages valued at $800 or less to be exempt from tariffs and paperwork.
Low value packages now face a tariff of 120% or a $100 package fee. On June 1, the fee will jump from $100 to $200.
The move has already had a huge impact on foreign retailers, especially Chinese online retailers like Shein and Temu, which are now facing steep duties for the first time and passing costs along to shoppers.
If the increase is passed on exactly to consumers, a $10 T-shirt could go up to $22 while a $200 luggage set could go up to $300.
A thick kitchen cleaning towel being sold on Shein, for example, has gone up 377% from $1.28 to $6.10, according to Bloomberg.
Currently, Temu has added "local" labels next to items that are already in the U.S. that won't be impacted by tariffs and are being sold at lower prices until they are out of stock.
The White House announced in April that it would end the exemption on small-dollar shipments from China, which retailers like Shein and Temu have historically taken advantage of by selling super cheap products to American consumers.
Trump previously extended the de minimis loophole back in February after outcry over an earlier decision to end it. The president had suspended the exemption on Feb. 1, causing widespread confusion and prompting the U.S. Postal Service to halt the delivery of packages from China and Hong Kong temporarily. Trump walked back that decision and reinstated the exemption days later.
Shein and Temu products get more expensive as tariffs go into effect
Cheap clothing and products from Shein, Temu and other Chinese online retailers are getting more expensive as tariffs go into effect.
The Trump administration closed a "de minimis" loophole early Friday that previously allowed for "low value" packages valued at $800 or less to be exempt from tariffs and paperwork.
Low value packages now face a tariff of 120% or a $100 package fee. On June 1, the fee will jump from $100 to $200.
The move has already had a huge impact on foreign retailers, especially Chinese online retailers like Shein and Temu, which are now facing steep duties for the first time and passing costs along to shoppers.
If the increase is passed on exactly to consumers, a $10 T-shirt could go up to $22 while a $200 luggage set could go up to $300.
A thick kitchen cleaning towel being sold on Shein, for example, has gone up 377% from $1.28 to $6.10, according to Bloomberg.
Currently, Temu has added "local" labels next to items that are already in the U.S. that won't be impacted by tariffs and are being sold at lower prices until they are out of stock.
The White House announced in April that it would end the exemption on small-dollar shipments from China, which retailers like Shein and Temu have historically taken advantage of by selling super cheap products to American consumers.
Trump previously extended the de minimis loophole back in February after outcry over an earlier decision to end it. The president had suspended the exemption on Feb. 1, causing widespread confusion and prompting the U.S. Postal Service to halt the delivery of packages from China and Hong Kong temporarily. Trump walked back that decision and reinstated the exemption days later.
