U.S. Shoppers Brace for Price Hikes as Trade Loophole Closes

Prices for Shein, Temu, and Amazon Haul products are set to rise after U.S. President Trump shuts down a trade loophole used for shipping low-value packages from China. This change impacts Temu and Shein significantly, who relied on the 'de minimis' exemption to keep their prices low.

In a significant shift for U.S. shoppers, prices for products from Shein, Temu, and Amazon Haul are expected to rise following President Trump's decision to close a trade loophole. The 'de minimis' exemption had previously allowed these firms to ship low-cost packages from China without incurring duties.

The closure of this loophole, part of a broader tariff strategy, targets up to 30% of all packages entering the U.S. daily under this provision. Analysts suggest that this will heavily impact companies like Shein and Temu, who have rapidly captured the U.S. market with competitive pricing and speedy delivery.

In response, both Temu and Shein are diversifying their supply chains and establishing U.S. warehouses. While larger companies may adapt to these changes, small and mid-sized retailers could face significant strain due to limited financial resources to manage the increased costs.

(With inputs from agencies.)