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Politics : President Joe Biden
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From: Ron9/15/2024 10:54:45 AM
   of 12172
 
Biden to Impose Tariffs on Cheap Importers like Temu

Your $4 one-piece might incur a few more bumps on its route to your mailbox. The Biden Administration proposed new rules yesterday that would force fast fashion retailers like Shein and Temu to pay tariffs on their products for the first time, squashing what the administration claims is “overuse and abuse” of an import tax loophole.

That loophole is the de minimis rule, which since the 1930s has allowed tax exemptions so that low-cost imports (as of 2015, that means anything under $800) can pass through customs without friction or fees. But critics say cheap Chinese retailers that ship items directly from factories to customers have abused the provision to skirt border inspections and taxes, ultimately undercutting American-made products.

  • A decade ago, 140 million packages entered the US every year under the de minimis rule, but that number has jumped to over a billion a year, according to the administration.
  • The administration says it wants to decrease the number of packages entering the country with these exemptions.
Temu and Shein seem unbothered. But investors weren't so sanguine. Stocks of US e-commerce brands like Etsy and Wayfair jumped over 5% after Biden’s announcement, while PDD Holdings (Temu’s parent company) dropped more than 3%.

morningbrew.com
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