Temu, Shein and other inexpensive retailers in China increase prices because the DEMINIMIS gap runs on Friday.
At the start of this month President Donald Trump signed an executive order (EO), which eliminates the duty -free determination for goods price $ 800 or less from China and Hong Kong. The EO notes that it’s “a critical step to counteract the ongoing health emergency of the illegal river of synthetic opioids to the USA”.
The order shall be put into force on May 2, 2025 at 12:01 p.m. EDT.
Related: Amazon starts a bargain business with probably the most articles below $ 10: “Ultra-low prices”
What is the “de Minimis” provision?
Online retailers with a low price akin to Temu and Shein use trade determination (available for the reason that Thirties) to assist them within the USA to grow and within the USA to assist e-commerce firms based in China to supply lower prices as products.
The determination made it possible to send packages price lower than $ 800 to the US Duty-Free.
Accordingly The US customs and border protection agency data processed the USA price greater than 1.3 billion de minimis programs price 2024 greater than 48 billion US dollars. For comparison 10 years ago in 2015, this number was 139 million.
How much will prices rise?
According to the EO, an service rate of either 30% of its value or $ 25 per article is added (after June 1, 2025 to $ 50 per article.
The Trump management notes that that is now along with the previously announced tariffs in China Up to 145%.
