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Trump's tariffs hit Shein and Temu – here's how customers could be affected

How and when Trump's tariffs could impact UK inflation and consumer prices!
WooGlobe - News / VideoElephant

On Wednesday (2 April), Donald Trump signed an executive order to close a trade loophole on shipments from China, targeting major retailers like Shein and Temu. Cheap goods from China were previously exempt from such tariffs.

This decision is expected to affect consumers, particularly those who regularly shop from these well-known brands.

Trump stated that these shippers frequently evade detection by taking advantage of the de minimis exemption, claiming that duty-free exports from China "play a significant role in the synthetic opioid crisis in the United States."

Packages eligible for de minimis (exemption from added duties) treatment are valued at under $800.

The new executive order will come into effect on 2 May.

Trump previously briefly suspended the loophole in February of his second term before restoring it as the Commerce Department put together a plan to "fully and expediently process and collect tariff revenue."

On Wednesday at the White House, the Commerce Department shared that "adequate systems are in place to collect tariff revenue" on low-value international shipments.

The new tariffs on de minimus goods will be "in lieu of any other duties that the shipments would otherwise be subject to," including Trump's 20 per cent levy on Chinese imports.

Shipments under the value of $800 will be subject to duty of 30 per cent of the value of the postal item or $25 per postal item.

By 1 June, the per postal item tariff is set to increase to $50.

How will it impact prices for consumers?

While there have not been any confirmed price increases yet, consumers could end up paying the tariffs costs if prices do go up.

As NPR reports, the change could force retailers to reconsider their entire business model - if they're forced to charge more for goods, then it could force them to revaluate their practices.

The retailers could also choose to ship less directly from China, ship goods in bulk to the US, or begin manufacturing elsewhere.

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