New US shipping rules target China's Shein and Temu

Published On Sep 13, 2024, 12:18 PM

The Biden administration has proposed new rules that would impose taxes on low-value shipments from China, particularly targeting e-commerce companies like Shein and Temu. This move aims to address concerns over the abuse of a tariff exemption that has allowed packages valued under $800 to enter the U.S. duty-free, prompting significant increases in such shipments. The new regulations would remove this exemption for Chinese goods already subject to tariffs, affecting various product categories. Both Shein and Temu defended their business models while acknowledging the upcoming changes, which have the potential to raise costs for consumers and alter the competitive landscape in e-commerce, especially against major players like Amazon.