The termination of a duty-free loophole by US President Trump has severely impacted Temu and Shein, leading to increased tariffs on their goods entering the US. Shipping costs are expected to rise significantly, causing these retailers, who dominate low-value package shipping, to struggle with profit margins. In response, they may redirect their focus to the European market, which also has its own de minimis rules. Despite the EU's lower dollar threshold for tariff exemption, the growth of Chinese shipments continues to challenge local EU businesses, while a proposed end to the de minimis exemption awaits legislative approval.
US President Donald Trump's elimination of a duty-free loophole has significantly impacted Temu and Shein's business models, causing their costs to rise drastically.
With a projected 30% tariff on goods from China, Temu and Shein's profit margins are shrinking, prompting them to pivot towards the EU market.
Despite the European Union's lower exemption limit, Chinese retailers like Temu and Shein have seen explosive growth, with their parcel volumes significantly increasing.
The proposed end of the EU's de minimis exemption is pending approval, leaving European companies vulnerable to the influx of low-cost Chinese imports.
Collection
[
|
...
]