Shein and Fear also do not escape Donald Trump’s new commercial offensive. The US President has just closed one of the largest gaps in global trade, imposing a rate on packages that so far arrived in the US-free US. The measure, which comes into force as early as May, reaches the Chinese giants of Fast Fashion and can make US consumer purchases cost
The paradise of cheap purchases may have the days numbered. Donald Trump declared war on China’s imports, closing one of the largest gaps that allowed platforms like Shein and stared to flood the US market with unbeatable products.
From May 2, all orders from China, even those whose value does not exceed $ 800 (about 724 euros), will be taxed at 30% of the declared value or at least $ 25 (about 22 euros). And the account can rise even more: from June, the minimum rate increases to $ 50 (about 45 euros) per package.
Shein and Temu have made the most of this tax exemption, sending millions of packages directly to US consumers. In 2023 alone, the US imported $ 66 billion (about 59 billion euros) of products under this regime, an impressive leap from the 5.3 billion (about 4 billion euros) of 2018.
Applications sell products for all tastes, sizes and needs. Opening the Temu website, it is clear that the favorite products of consumers include portable blenders, LED therapy masks, mini printers, massage pistols, mobile phones, clothing vaporizers, buguses and smartwatches. At Shein, the most sought after products are clothing and makeup.
Now, with the new rate, Chinese giants can be forced to reassess their strategy – and inevitably consumers will be able to pay more for their purchases. The age of cheap orders may have the days numbered.
The official justification for this measure does not make direct reference to online trade, but to combat fentanyl trafficking, a deadly synthetic drug, which, according to the president, is devastating the US. Donald Trump claimed that criminal groups take advantage of small packages to smuggle China’s illicit substances to the US.
However, behind the scenes, the measure is seen by many as another chapter in the trade war between Washington, DC and Beijing. Joe Biden’s administration had already tried to limit exemption to strategic goods, but Trump went further, taxing all orders from China and Hong Kong without exception.
The impact of this measure can be considerable not only for Chinese companies, but also for US consumers. According to the Cato Institute, the end of the exemption can cost to the United States between 11 and 13 billion dollars (about 9 to 11 billion euros) a year, which translates into 35 to 80 dollars (about 31 to 72 euros) more per person.
