Temu and Shein, two Chinese e-commerce giants, are facing steep tariffs after President Donald Trump closed a U.S. trade loophole. According to CNBC News, despite the disruption to their low-cost import model, experts say the companies remain well-positioned to compete in the American retail market.
Shipments from China no longer qualify for the de minimis rule, which had exempted imports under $800 from tariffs. The change exposes platforms like Temu and Shein to duties as high as 120%, or flat fees set to double to $200 in June. Prices for direct-from-China goods have already surged, which has prompted Temu to cease direct shipments to the U.S.
Critics long accused both companies of abusing the exemption to “undercut” local businesses and import counterfeit goods. But analysts caution against assuming their downfall.
CNBC reported that Temu has moved to fulfil orders from U.S. warehouses, while Shein is expanding manufacturing in countries like Turkey and Mexico.
The impact is already reaching Belize since many people shop on Temu and Shein using U.S. shipping addresses and freight services. Since the tariffs took effect, several Belizean Shein resellers have adjusted their prices.