Trump’s Tariffs Suspend ‘De Minimis’ Loophole on Imports – RVBusiness – Breaking RV Industry News
EDITOR’S NOTE: The RV industry has sought to close the de minimis loophole as foreign companies use the exemption to flood the U.S. market with inexpensive RV parts and accessories. In addition, the Trump Administrations proposed tariffs on Canada and Mexico, and those countries’ retaliatory tariffs, have been placed on a 30-day hold as officials continue to negotiate.
NEW YORK/LONDON – Shein, Temu and Amazon Haul prices are likely to rise for American shoppers, analysts and industry experts said, after U.S. President Donald Trump this week shut a trade loophole that has been used to ship low-value packages duty-free from China, according to a Reuters report.
Fast-fashion retailer Shein and online dollar-store Temu, both of which sell products ranging from toys to smartphones, have grown rapidly in the U.S. thanks in part to the “de minimis” exemption enabling them to keep prices low.
Temu and Shein together likely accounted for more than 30% of all packages shipped to the United States each day under the de minimis provision, the U.S. congressional committee on China said in a June 2023 report. Both Temu, a subsidiary of Chinese e-commerce giant PDD Holdings, and Singapore-headquartered Shein have taken measures such as sourcing more products from outside China, opening U.S. warehouses and bringing more U.S. sellers on board, to mitigate the impact.
Trump’s halt to Section 321 de minimis is part of his implementation of an additional 10% tariff on China and 25% tariffs on Canada and Mexico, which were paused for a month. Nearly half of all packages shipped under de minimis come from China, according to the same committee report.
Amazon set up Amazon Haul in November. This allows shoppers to purchase $5 handbags and $10 sweaters from China-based sellers, although they face longer shipping times. While Trump’s crackdown on de minimis is likely to bruise Amazon Haul, said CFRA analyst Arun Sundaram, it is a new, and very small part of Amazon’s overall e-commerce business.
Click here to read the full Reuters report.
