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Trump targets the Temu escape, Shein used to take Amazon

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The new commercial levies of President Donald Trump against China, Canada and Mexico include a large against international electronic commerce, with apparent plans to extinguish a longtime price exemption for packages of $ 800.

The executive decrees of Trump leading 25% of samples in Canada and Mexico – plus an obligation of 10% on China – specify that the “minimis” exemption for small packages no longer applies. Under the exemption, products lower than this dollar amount are able to enter the United States without prices – a boon for electronic commerce in China who often ship cheaper goods directly to consumers to consumers UNITED STATES.

Washington aims for a flaw that the TEMU retailers from PDD Holdings Inc. in Shein focused on fashion have exploited for years to develop rapidly in the United States. This receives electronic commercial companies linked to Chinese – which have developed by tightening smaller plans in much higher volumes for consumers – enormous advantages compared to market holders such as Amazon.com criticisms Inc. illegal or dangerous goods.

Trump’s decision – while earlier than some analysts expected it – had been widely planned by Tamu and Shein. Since last year, they have started to diversify their logistics channels, to expand networks in the United States and to place larger bulk orders.

However, a formal closure should strike a fast growing market segment. TEMU US represents a low adolescence percentage of PDD revenues, said Jefferies. Alibaba Group Holding Ltd. and JD.com Inc. have prosperous American companies. And this raises questions on the long -awaited initial public offer of Shein, an investor mega plans to take place this year.

“TEMU’s efforts to speed up its local semi-managed model in the past year could help,” said Citigroup analyst Alicia Yap. But “the new prices will always have a negative reading for the growth of TEMU in 2025 and beyond.”

The representatives of Alibaba, JD, Shein and Temu did not respond to requests for comments.

The complete extent of minimis changes – which they only apply to new prices issued on Saturday or to existing commercial levies – was not clear. A White House spokesman did not answer questions about his scope.

However, trade lawyers have said that Trump’s language repressing Minmis’s exemption could largely apply, even in existing tasks, Canada and Mexico.

US buyers and companies imported around $ 48 billion in world deliveries under this escape during the first nine months of last year, according to customs and American border protection.

TEMU in particular exploded in the United States by offering high discounts on a variety of products for people wishing to wait a week for delivery. The popular market – which, according to Emarketer Inc., will sell $ 30 billion in products to American buyers this year – has become an alternative to Amazon as well as retail chains such as Hobby Lobby, Party City and Dollar Stores.

Buyers have shown that they were ready to wait for delivery in exchange for discounts, defying Amazon’s fast delivery model. By sending individual orders directly to China customers, they avoid prices through minimis exemption. Large retail chains that buy large -imported stocks on ships generally transmit tariff costs to customers.

A senior administration official who informed journalists about new prices sought to justify the end of the exemption on Saturday, saying that the United States loses a huge amount of pricing income and that the flaw for value packages Smaller also prevents the capacity of American customs agents from catching the move of fentanyl in moving the fentanyl in moving the fentanyl in moving the fentanyl in the moving of the fentanyl moving the fentanyl moving in the moving of fentanyl in fentanyl in fentanyl in fentanyl Moving the fentanyl in moving fentanyl. in the country. The manager did not specify the scope of the change.

Legislators have warned that the minimis road facilitates fentanyl and the precursor chemicals used to make the fatal medication to escape customs and enter the United States without being detected.

Large escape

Shipments of smaller values represent more than one-tenth of Chinese exports to the United States, according to research by nomura holdings inc. economists Inc.

The total volume of minimis expeditions to the United States struck 1.4 billion packages during the year 2024, according to customs and the protection of American borders, about double the number in 2022. Online retailers to Reduced prices like TEMU and Shein have contributed significantly to the peak of volume.

Earlier: the White House targets Chinese retailers with a planned commercial solution

Feeling such a change, TEMU has already sent more bulk inventory in the United States and paying prices to store it in warehouses near major cities to close the delivery times. This change should help blunt the effects of minimis change, but will always pressure its discount model.

Amit Khandelwal, professor at the Yale University Jackson School of Global Affairs, said in a statement sent by email that “minimis shipments were relatively higher for low -income consumers” and that the abolition of the exemption would harm more to these buyers.

Trump’s new prices come into force at 12:01 p.m. New York time on Tuesday and are an effort to punish Canada, Mexico and China for what the American president says he is a failure to repress fentanyl and fentanyl flows illegal immigrants through American borders.

– With the help of James Mayger, Debby Wu and Vlad Savov.

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remon Buul