Trump’s crackdown on trade loophole to hit Shein and Temu — and help Amazon

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Donald Trump’s crackdown on duty -free access for smaller products can threaten to increase their expenses while benefiting Amazon, the Chinese Ecommerce Group Shane and Temur business models, analysts say.

The US President imposed an additional 10 percent tariff on Chinese imports on Weekend and said that the so -called D Minimis rules would no longer be exempted from the invoice under $ 800 from tariffs.

US Customs Authority on Monday said its agents need to test the contents of each mail package from China and be officially cleared. It can slow down the shipments and increase the costs for those companies that partially operated by the US growth partially operated by skilled distribution of cheap Chinese produce products.

“The effect is going to be much bigger than justice. The The Some packages, “Henry Gao, a law professor at Singapore Management University. “Everything from China is going to be held because of this.”

Shin And the rival Temu, who sells low prices clothing and other items, has increased rapidly from the Covid -19 epidemic and perhaps more than 30 percent of the customs -free shipment arriving in the United States under regulations, 2023 in a Congressional Report. According to US duty, about 4 million de minimis shipments are processed daily.

More than half of the De Minimis Shipment in the United States derived from China. US duty and border protection data have shown that the average value of orders, including $ 47.8 billion in worthy products transmitted in the first three quarters of 2024, was about $ 50.

Trump’s move came just as Chinese companies were facing reactions in Western markets, competitors said they were unjustly to minimize them and complained to controllers like EU that they had sent low quality belongings.

It is also bad news on platforms like Chinese suppliers, who have become main customers, and have helped reduce orders after selling their previous models due to the previous models of bulk selling to large Western buyers.

Shayne Executives, which aims a London list Along with the evaluation of about £ 50BN, it has argued that its products will remain competitive due to the technique of adjusting the production volume on the basis of demand.

With Trump announced a new tariff on products from Canada and Mexico, the issue of canceling the concession came. They were Hold After Trump talks to the leaders of the countries. The tariff on China came into effect on Tuesday and Trump was talking to Chinese leader Xi Jinping in the coming days.

The US Ecommerce Agency Amazon tried to fight the threat raised by cheap Chinese suppliers by supplying goods to less than $ 20, including shipping during shipping within one to two weeks. Analysts say it can now be able to avoid a “bottom race”.

Harvard’s associate professor Andy Wu said, “Closing the lufole is favorable for Amazon.” The The To get the maximum value from its logistic system. ”

The D Minimis Rules were designed to reduce the burden on customs officials by removing the need to inspect each small-value invoice and allow the US and customers to avoid prolonged tariff process when purchasing less valuable items from abroad.

However they were facing increasingly opposing, persuade the former US President Joe Biden Suggest to tighten the rules For Chinese imports late last year, when EU offered scraping discount on low -priced packages than € 150, there is Financial Times ReportThe

Deputy Secretary-General Andrew Wilson of the International Chamber of Commerce policy said that removing the marginalization of De Minimis was more likely to hit the business smaller than the company like Shane and Temu.

“They are [Shein and Temu] The Amazon model of having warehouse in the United States will accelerate the steps that are basically. The The May have some effect on profitability and expenditure that may pass [on to] Customers, however, they will be large enough and will have adequate resources [mitigate it]The ”

Temu, which is owned by PDD Group, started last year Appointment Chinese suppliers who put goods in warehouses in the US and say existing suppliers to spend shipping, warehouse and last mile supply. Shane has expanded its logistic network in the United States and tried to diversify its production in Brazil, Türkiye and India.

Delawarwar University Professor She

“Higher tariffs will increase sourcing or operational costs,” he said. “But a great concern is uncertainty. You can really feel it at the moment. “

Additional Report by Alienor Alokot and Laura Onita