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US small plots closes the prices for Shein and Temu, which increase prices

Peter Hoskins

Business reporter

Getty pictures A package of Shein sits on a cardboard box. The package is made of white plastic with black pressure. The Shein S logo is outstanding in the middle of the package.Getty pictures

President Donald Trump was concluded with a debt-free gap for packages with low value and increased prices for US customers such as Shein and Temu.

The Chinese online retail giants were based on the so -called “de Minimis” comment for the sale and shipping of low -quality articles directly to the USA without paying tasks or import taxes.

Pendants of the gap that were applied to plots worth less than 800 US dollars (£ 600) argue that it has contributed to optimizing the customs process.

But both Trump and his predecessor, Joe Biden, said it was damaged by American companies and was used to smuggle illegal goods, including drugs.

What was the liberation of minimis?

De Minimis is a Latin term that literally translates “the smallest”.

In this context, it refers to a US trade rule issued by the Congress in 1938 in order to avoid the costs for the collection of only small amounts of import taxes.

In the 21st century, retailers enabled the retailers to send packages worth less than 800 US dollars to US customers without paying the tasks or taxes.

Shipments within the framework of the liberation made up more than 90% of the total charge that entered the USA, according to the country's customs and border patrol (CBP).

Reuter's young woman sat down and holds a number of bags with the Shein brand.Reuters

Chinese online retailers such as Shein and Temu benefited from the gap.

Both platforms attracted millions of US customers with marketing flashes that showed their ultra-low-lower ones

And it was the liberation of Minimis that helped them offer these shops so cheaply.

Shein and Temu did not immediately respond to BBC requests for comments.

Last month, the competing companies stated in the past month that operating costs “have increased due to the recent changes in global trade rules and tariffs”, and added that they will make “price adjustments” from April 25th.

Why did Trump close the gap?

In February Trump briefly closed the gap.

The suspension was quickly held, as a customs inspectors, delivery companies and online retailers tried at short notice to adapt to such a big change.

During the initial suspension of the liberation, the US mail service temporarily stopped accepting packages from the Chinese mainland and Hong Kong.

In the announcement of the latest move by Executive, he aimed to tackle the illegal import of synthetic opioids such as fentanyl.

It said that many Chinese senders use misleading practices to hide illegal substances in low value packages “to use the liberation of minimis”.

“These drugs kill tens of thousands of Americans every year, including 75,000 deaths a year that are only attributed to Fentanyl,” she added.

The idea is not new. Last year, the bidges proposed rules that are supposed to hire the “abuse” of the liberation.

“The growing volume of the DE -Minimis programs makes it increasingly difficult to aim and block illegal or uncertain programs,” it said.

The step corresponds to Trump's politics, to be limited from China.

Since returning to the White House in January, Trump has imposed taxes of up to 145% for Chinese imports. His administration said in April that the taxes for some Chinese goods could reach 245%if the new tariffs are added to the existing tariffs.

The US authorities have also accused the success of companies such as Temu and Shein to set the border authorities, since the number of packages that enter the USA under the gap rose from about 140 million a decade to more than a billion in the past year.

What does that mean for online buyers?

Packages sent to the United States from mainland China and Hong Kong with a value of up to 800 US dollars now have a tax rate of 120% or are subject to a flat fee. The fee started at $ 100 and is scheduled to rise to 200 US dollars in early June.

Before these packages were exposed to import taxes, the US consumers increased.

Shein and Temu initiated prices for their US customers before the second period “due to the recent changes in global trade rules and tariffs”.

The American Action Forum, a right -wing political group, was estimated last year that the elimination of the liberation to “USD 8 billion to $ 30 billion would lead to additional annual costs that are ultimately passed on to consumers”.

Chinese online retailers have also benefited from similar rules in Great Britain and the European Union.

In a step that reflects the US campaign, Great Britain has announced a review of the import with low value that come into the country.

In Great Britain, the current rule enables international retailers to send packages to Great Britain worth less than 135 GBP without increasing import taxes.

Chancellor Rachel Reeves said the cheap goods prevent “the British High Street and the British retailers”.

The European Union has also proposed plans to scrap duty -free exceptions for plots worth less than € 150 (£ 127.50; $ 169.35).

This means that consumers in the UK and EU could soon increase prices.

Will US border reviews change?

Packages that came under the liberation in the United States were inspected in the same way as other goods, including the review on illegal substances. And most synthetic opioids are brought into the country through the border with Mexico.

Some experts believe that the termination of the liberation will not help to contain illegal drugs and that they are not dealing with the challenges of the US manufacturers.

There are also concerns that the move will create more work for US border officials who are already stretched when they try to stop the drug smuggling.

According to the Pro-Open Trade Association, the National Foreign Trade Council (NFTC) would remove the removal of Minimis “relocate the focus of the CBP from the border, where a vast majority of illegal substances and products enter the country”.

“CBP would have to hire new employees and schools, the agency costs millions or they cause them to move agents from the already overloaded southern border,” added.

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