The policies of President Donald Trump increase tariffs and tariffs on the products imported from China announced on Wednesday could represent an existential threat to the sites of cheap and low quality and low quality goods shopping such as her and Temu, experts warned.
Shein, who specializes mainly in low -cost and badly made women’s clothing, and Temu, who sells clothes, home products and other items or murky origin for Americans, trust the use of mobile phone applications to provide instantaneous Americas. The Extreme Discounts are A Result of Two Polities: Shipping the Products Directly from China to the Consumer, rather than importing Them in Large Quantities, and – Accordance to Congress and Osother Verifiable Sources – The Widestread Use Of Slaufure, Unudy Slavingure, INUDY SLAVINGURE Slingove, Slavousury, Slavousuuring, Slavousuuring, Slavousuuring, Slavousuuring, Slaving Slavos, Slavery, Slavery Slavaufuring, Slaving that enslave, enslaving Slavation or Uigur genocide in genocide.
The low prices and the imediaia of the shopping experience have made both applications tremendously popular among American consumers. Shein reported a $ 2 billion record in profits in 2023 and, according to the reports, approximately half that in 2024 fell, but in large part, apparently, due to the Temu competition. Peanutodou, the Mint of Temu, told a net profit of $ 8.3 billion in 2023, based on the latest publicly available statistics.
Both have benefited at the expense of US companies and brick and mortar establishments. In March, for example, the Forever 21 women’s clothing company declared himself in bankruptcy, affirming in his presentation that the fact that his clothes are imported into stores instead of sending directly, as Shein and Temu do, it was a significant factor in its decline.
“Certain online retailers who are not Americans who compete with debtors, such as Temu and Shein, have the advantage of this exemption and, therefore, have been able to pass significant savings to consumers,” Stephen Coulombe, a co-chief, restructuring. “Consequently, retailers who must pay tasks and tariffs to buy products for their stores and stores in the United States, such as the company, have been reduced.”
For years, the two Chinese partners did not pay duties or rates in their shipments due to a rule known as the The minimis Walkhole, who establishes that any package sent from abroad for a value of less than $ 800 does not need to pay these rates, nor does a greater import shipment receive the scrutiny to guarantee compliance with the laws against slavery. The Temu and Shein packages are rarely worth about $ 800, creating a great opportunity for China -based companies.
President Trump announced an attempt to close the The minimis Laguna in February, but stopped the process to allow US government agencies to prepare for logistics to process the large volume of packages affected by the rule. From this week, the The minimis The escape will end on May 1; Temu and Shein will have to pay the tasks in their packages as of May 2.
However, beyond the closing of the escape, President Trump increased duties in The minimis Packages in an executive order on Wednesday. The executive order contains a provision that increases the Adalorem Duty rate The minimis China’s packages from 90 percent to 120. These packages will also see an increase in a postal article from $ 75 to $ 100 on May 1, and from $ 150 to $ 200 on June 1.
“In my opinion, this modification is necessary and appropriate to effectively address the threat to the national and economic security of the United States raised by PRCS [China’s] The contribution to the conditions reflected in large and persistent commercial deficits, “Trump wrote in the Executive Order,” including the RPC industrial policies that have produced a systemic manufacturing capacity in the PRC and suppressed the domestic condom capacity of the United States, which are actions of conditional driving. “
The magazine PC world He explained that customs and border protection of the United States (CBP) will have the option of “choosing whether they send their shipping at 90 percent, or $ 75 per article”, in a written item before the increase to 120 percent. Anyway, prices are expected to increase drastically in China’s main discount applications.
In statements to the Newsweek website, the professor at the University of Delaware, Sheng Lu, concluded that Shein and Temu “definitely” would be “directly and significantly affected” by Trump’s policies.
“High tariffs combined with the loss of The minimis The benefits could limit Shein’s products offers in the US market, “Lu explained.” As a result, other fashion companies that currently compete with Shein may feel safer to increase their prices, given the reduced offer in the market. “
“There is no retailer form or for their suppliers to absorb the additional cost,” Lu added.
Shein and Temu depend largely on “influential people” in the toxic application of Chinese Tiktok social networks to promote articles, or through “sets”, where they buy a large number of unnecessary items and promote similar behavior by their vailers. These “influencers”, the technological site that Verge pointed out this week, are already pre -jilos to use the less than the expected increase in prices. Verge reports preceded the last round of tariffs and growing tasks about Chinese products.
“I love making transport videos, and sharing affordable findings is a large part of how I connect with my followers,” he told The Outlet, an “influence”, identified as Donna Leah. “But when prices jump so drastically, he is a child of killing the emotion. And honestly, it makes me think twice before buying something.”
“I think we will see Ferwer Aliexpress or Shein Saul in my content in the future, just because the reality is: it will only become more extent,” he added, suggesting that he could soon change the product.
“Fast fashion” and the massive consumption of economic or toxic items in Chinese electronic commerce sites have been identified as an important environmental danger. The Initiative of Climate Connections of the University of Yale identified in September “the largest fast fashion pollut” in September, citing its “prolific manufacture”, massive carbon footprint and the use of artificial intelligence to further accelerate its production. Meanwhile, the South Korean government announced in August that it had found evidence of toxic substances present in products sold in Shein and Temu, as well as the Chinese competitive electronic commerce site, Aliexpress.
Shein and Temu have also been involved in slavery sponsored by the Chinese State. A 2023 report of the Select Committee of the Chinese Communist Party Chamber confirmed that it was an “extremely high risk” of Americans who bought products whose supply chains were contaminated by slavery if Eneit’s businesses conded.
“Themu is doing almost nothing to maintain its free supply chains of slave labor,” said the select committee of the Chamber about the president of the Chinese Communist Party, Mike Gallagher (R-Wi). “At the same time, Temu and Shein are building empires around The minimis Lofole in our import rules: dodge import taxes and evade the scrutiny of the millions of goods that sell to Americans. “
Some evidence suggests that the Chinese government has pressed Shein in particular, which according to reports has been sought to other countries with better records about slavery to manufacture, not to leave the country. On Tuesday, Bloomberg News reported, citing anonymous sources, that the Ministry of Commerce of China is working “with Shein and other companies to discourage them to diversify supply chains by obtaining other countries.” According to reports, Shein was buying potential locations in Vietnam and other regional countries.
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