US imposes new shipping rules on Shein and Temu imports

The Biden administration has proposed new shipping regulations targeting low-value imports from China, specifically affecting companies like Shein and Temu. These changes aim to address concerns over the de minimis exemption, which previously allowed packages valued under $800 to enter the U.S. without tariffs. Lawmakers have expressed worries about the rapid growth of these e-commerce platforms, which have reportedly exploited this exemption to gain a competitive edge in the U.S. market. The proposed rules would eliminate the tariff exemption for Chinese goods that are already subject to tariffs, impacting a wide range of products, including textiles and apparel. Additionally, the new regulations would require shippers to provide more detailed information to U.S. authorities, which is expected to help in identifying illegal shipments. The surge in de minimis shipments has strained U.S. customs and border authorities, with the number of such packages increasing dramatically from 140 million in 2013 to over 1 billion last year. Both Shein and Temu have defended their business models, emphasizing their efficiency and commitment to consumer value. However, they face scrutiny regarding product safety and allegations of forced labor in their supply chains. The American Action Forum has estimated that the removal of the $800 exemption could lead to significant additional costs for consumers, ranging from $8 billion to $30 billion annually. The proposal will undergo a comment period before being finalized, and its potential impact on the e-commerce landscape remains to be seen. Shares in PDD Holdings, the parent company of Temu, fell following the announcement, reflecting investor concerns about the implications of these new regulations.