Brett MathewsB writes on LinkedIn: US CLOSES CUSTOMS LOOPHOLE USED BY SHEIN AND TEMU: The U.S. has shut down the “de minimis” customs loophole that allowed SHEIN, Temu, and other China-based e-commerce giants to flood the market with ultra-cheap goods while bypassing import duties.

For years, these platforms leveraged the US$800 duty-free threshold to ship billions of dollars’ worth of products directly to U.S. consumers without paying tariffs.

This key advantage helped them massively undercut American businesses. A few facts:

• De minimis imports skyrocketed from US$9.2B in 2016 to US$54.5B in 2023
• Chinese sellers accounted for nearly 60 per cent of all such shipments
• Total shipments doubled from 503m in 2019 to 1bn in 2023
• The average per-shipment value FELL from US$111.71 to just US$54.50

The move means e-commerce retailers selling into the US will need to absorb higher costs or adjust pricing, potentially losing competitive advantage.

It’s a win for U.S. retailers many of whom have complained for years that they were operating on an uneven playing field.

We may also see a shift in consumer expectations. Shoppers have become accustomed to rock-bottom prices, but those days may be numbered.

OUR STORY: https://lnkd.in/eE-PQDBx