NEW YORK ¨C The meteoric rise of shopping platforms selling Chinese-made goods, including Shein and Temu, has been fueled by a decades-old loophole that allows cheap products like $10 dresses to land in U.S. mailboxes tariff-free.
This happens thanks to a so-called de minimis rule exempting packages valued at $800 or less from tariffs as long as they¡¯re addressed and shipped to individuals. The exemption is open to all retailers but is most heavily used by Shein and PDD Holdings¡¯ Temu, and potentially by TikTok¡¯s new e-commerce business.
A June report published by a House of Representatives committee estimated that Shein and Temu likely account for more than 30% of all de minimis shipments into the U.S.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.