US small parcels loophole closes pushing up prices for Shein and Temu

President Donald Trump has been closed for tax exemptions for low -cost packages, raising the price of company customers such as shein and Temu.

Chinese online retailers relied on exemptions to sell and deliver them directly to the United States without paying low -cost items for the so -called “de minimis” exemptions or paying taxes.

The loopholes applied to the parcel of less than $ 800 (600 pounds) argue that it helped to simplify customs procedures.

But Trump and his predecessor, Joe Biden, have damaged the US business and are used to smuggling illegal products, including drugs.

De Minimis is literally translated into “smallest” in Latin terms.

In this context, it refers to the US trade rules established by Congress in 1938 to avoid the cost of collecting only a small amount of imports.

After a series of thresholds rose in the 21st century, retailers were able to deliver less than $ 800 packages to their customers without paying their jobs or taxes.

The shipping of exemptions accounted for more than 90% of all cargo entry into the United States. According to the customs and border patrols of this country (CBP).

Chinese online retailers, such as shein and Temu, have received great benefits from loopholes.

Both platforms have attracted millions of US customers with marketing Blitz.

And it was at least exemption that it helped them to provide the deal too cheaper.

Shein and Temu did not respond immediately to the BBC request.

But in almost the same statement last month, rival companies said, “The operating costs have increased due to the recent changes in trade rules and tariffs around the world, and they will make them. From April 25th, “Price Adjustment”.

In February, Trump closed a loophole for a while.

Customs inspectors, delivery companies, and online retailers struggled to adapt to these major changes with short notifications, and suspension was quickly suspended.

During the initial interruption of exemption The US postal service temporarily suspended parcel acceptance in mainland China and Hong Kong..

Executive order Recent movements showed that the goal was to deal with illegal income of synthetic opioids such as pentanil.

Many Chinese shipments use only a lot of practices to hide illegal substances with low -cost packages and “to use the minimum exemption.”

“These drugs killed tens of thousands of Americans annually, including 75,000 deaths per year due to pentanil alone,” he added.

Ideas are not new. Last year, the BIDEN administration proposed a rules and suggested that “abuse” of exemption will be stopped.

“As the amount of de minimis shipping increases, it is becoming increasingly difficult to target illegal or safe shipments.”

This movement is consistent with the policy of cracking down on Trump’s products in China.

Since returning to the White House in January, Trump has imposed a tax of up to 145%on China’s imports. His administration said in April that when a new tariff is added to the existing tariffs, some Chinese products can reach 245%.

The US authorities also condemned the success of companies such as Temu and Shein for the number of packages that entered the United States from about 140 million to more than 1 billion last year to the border authorities.

Packages from mainland China and Hong Kong, which are worth up to $ 800, are now faced with a tax rate of 120%or a semen fee. This fee will start at $ 100 and rise to $ 200 in early June.

Even before the package was imported, US consumers saw the price rising.

Shein and Temu began to raise the price of US customers ahead of the May 2 deadline due to the recent changes in world trade rules and tariffs.

If the right policy group, American Action Forum, is estimated to be removed last year, it is estimated that it will be $ 8 billion to $ 3 billion for additional annual costs to be delivered to consumers.

China online retailers have benefited from similar rules of the United Kingdom and the European Union.

In the movement that reflects the behavior of the United States The UK has published a review of low -cost income from all over the country..

In the UK, according to the current rules, international retailers can send a package to the UK, which is worth less than 135 pounds, without generating imported taxes.

Rachel Rachel Reeves said that cheap products are underestimating British highlands and British retailers.

The European Union also proposed to abolish the tax exemption for parcel for less than € 150 (£ 127.50; $ 169.35).

This means that consumers of the UK and the EU can soon see the price increase.

The package that arrived in the United States under the exemption was inspected in the same way as other products, including illegal material tests. According to officials, most synthetic opioids are brought to the country through the border with Mexico.

Some experts believe that finishing exemptions hardly helps to suppress illegal drugs and will not solve the problems faced by an American manufacturer.

There is also a concern that we will create more work for US border officials that are already stretched while trying to stop drug smuggling.

According to the National Trading Association, the National Opremer Trade Council (NFTC) will remove the DE Minimis exemption and the focus of the CBP will move away from the border.

“The CBP has hired and trained new people, allowing you to pay millions of dollars in agencies or to move agents from the southern border already negligent.”