Cheap clothing and products from Shein, Temu and other Chinese online retailers could soon get more expensive.
The White House is ending an exemption that prevented tariffs on small-dollar shipments from China. The move will have a huge impact on Chinese online retailers like Shein and Temu, which are now expected to face steep duties for the first time, in a major blow to their businesses.
President Donald Trump signed an executive order Wednesday ending the “de minimis” loophole on shipments from China, an exemption that allowed shipments under $800 to enter the U.S. duty-free. Foreign online retailers like Shein and Temu have historically taken advantage of that loophole, allowing them to sell super cheap products to American consumers.
The exemption is set to end May 2.
Critics of the de minimis exemption say it has harmed American businesses, like fast-fashion company Forever 21, which recently filed for bankruptcy and said in its filing that it was unable to compete with the lower prices of its foreign competitors.