Trump’s Minmis’ abrogation gives Shein, Temu Temporary Edge

• Shein and Temu benefit from Trump’s break by finishing the minimis exemption – for the moment.
• The minimis exemption allows deductible imports of rights less than $ 800.
• Meanwhile, many companies that get their supplies in China are now paying prices.

Shein and Temu won a victory thanks to President Donald Trump. While the prices strike the retailers and oblige some to increase their prices, the two companies are still able to use the minimis exemption after the Trump administration has temporarily interrupted its plan to eliminate it.

The two companies are doubly advantageous of some of their competitors – at least for the moment. Many companies that manufacture their goods in China are now paying additional prices, while Minmis allows companies like Temu and Shein to import articles at low cost without paying duty.

“Everyone will pay them except Temu and Shein. (For the moment; we know that De Minmis disappears in the future”), “said the founder of Marketplace Pulse, Juozas Kaziukėnas in a LinkedIn post.” Oddly, Temu and Shein never had it better. “

None of the two companies responded to a request for comments from Business Insider.

In early February, Trump announced that he would simultaneously impose prices on Mexican, Canadian and Chinese products and would end the minimis exemption, which enabled retailers to import rights overrums as long as they were assessed at less than $ 800 and sent directly to customers.

But a few days later, Trump published another decree which said that from Minmis – also known as article 321 – would remain in place until the customs authorities can establish a new process of collecting rights on the plans sent using the provision.

Meanwhile, the 20% prices on Chinese products continued. (Trump temporarily interrupted 25% tariffs on Mexican and Canadian products on Thursday, saying that they would be pending until April 2) This means that even if an item would have been subject to a rate, importers do not currently pay for this price if they are shipped via Minmimis.

One of the reasons why the legislators have argued for the abrogation of Minmis in recent years is that it is difficult for American companies to compete with companies using Minmis to save money. They also argued that De Minmis allows the importation of illicit goods like Fentanyl – an argument that Trump has echoed in the decrees.

“The fact that we immediately penalize American companies that make Offshore while providing this continuous advantage to the Chinese markets such as TEMU and Shein have no meaning,” said Matthew Hertz, third-person founder of the third logistics platform, said Bi.

He wrote on LinkedIn: “There are currently 0% of prices on individual plots entering the United States from anywhere, as long as the values

Logistics experts expect Minmis to disappear, but it is not clear when.

Shein and Temu have prepared at the end of Minmis by diversifying their supply chain and further filling their orders in the United States. The two electronic commercial companies previously declared that they did not rely on Minmis to develop. Industry experts told BI in February that the real advantage of companies lies in their ultra-basic prices and, in the case of Shein, an ability to make very fashionable items in a short time.

Chinese electronic commerce disruptors are not the only companies to use the minimis exemption. Customs and the protection of American borders declared in a press release in January that minimis shipping increased by more than 600% of the 2015 financial year to 2023, from 139 million per year to more than a billion. According to CBP, more than 1.36 billion balance sheets were sent via minimis during the year 2024.

The announcement that of Minmis would be repealed – then the sudden reversal of this announcement – left many companies that sell cross -border in the United States which find it difficult to plan. Without a clear chronology on the moment of Minmis is officially gone, they have now a little more time to do so.

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