Shein and the theme of the icons are shown on the phone screen on this illustrational photo taken in Krakow, Poland on August 27, 2024.
Jakub Porzycki | Nurphoto | Getty Images
President Donald Trump Tariffs against China, Canada and Mexico are targeting a trade provision that has helped to stimulate explosive growth of budget internet traders, including the topic and Shein.
Trump On Saturday signed Executive order that imposes tariffs on the three first trading partners in the country. The goods imported from Canada and Mexico will be relaxed with 25% of tariffs, while the goods from China will charge 10% of taxes. Energy resources from Canada will have a lower tariff of 10%. Duties are expected to enter into force on Tuesday.
The orders against China, Canada and Mexico stop the exemption in the store, known as “De Minimis”, which allows exporters to deliver packages worth less than $ 800 in US customs.
The De Mining provision has existed since the 1930s, but its use in recent years has been under increasing supervision. Administration of bidet took steps last September In order to suppress “excessive use and abuse” de minimis, claiming that it helped the Chinese e-commerce companies underestimate competition with lower prices. Officers also claimed That the shipments de minimis “subject to minimal documentation and inspection”, making concern for product safety.
Now in 2024. They processed more than 1.3 billion de minimis shipments, According to data from the US Customs and Border Protection Agency. This is more than 139 million a year in 2015, CBP said.
The hole enabled cheap e-trade companies like PDD Holdings-In the topic, shein and AlibabaAliexpress, who all have to do with China, offer virtual smorgasbord cheap clothing, household items and electronics, such as $ 15 smart watches and $ 3 shoes.
Shein and the topic They went to digital marketing Over the last few years, in an attempt to lure more customers who starve to contracts. Theme 2024 Referred to the top Apple cider A list of the most softened free applications in the US for the second year in a row, while Shein entered No. 12.
Their popularity in the USA stimulated Amazon to Start your own entranceCalled Haul, last year that allows third -party sellers to deliver goods to consumers directly from China. Amazon allegedly relies on the rule of trade de minimism to import items sold on wool to bypass the tariffs, Data logged inquoting people who are familiar with the program. Amazon spokesman did not immediately respond to CNBC at the commentary request.
Amazon, ebay and Etsy It could be done by Trump’s administration for the De minimis hole. Companies manage the Internet markets that allowed third -party sellers to manufacture to the market directly to consumers, competing directly with the theme and Shein.
Amazon has long linked Chinese manufacturers with American customers through its widespread third party market. The market is a key component of Amazon’s retail strategy, which accounts for about 60% of the products sold in place. Amazon also generates compensation by providing fulfillment, delivery, account support and advertising services to the sellers.
The dealers based in China consisted of a significant contingent of the Amazon market for many years, although the company first recognized in 2023 that they were doing a “significant part”. According to some estimates, they surpass US sellers on a platform, according to data from Pulse on the market.
The theme and Shein also expanded their strategies because the hole de minimis came under threat. Last year, the topic began boarding Chinese sellers on his page who had an inventory in American warehouses, allowing him to deliver the package to US customers faster, according to Information. Shein has also opened the distribution centers and Hub supply chain in the US
WATCH: Amazon Haul takes over the topic to make customers bring cheap goods from China
