Fast fashion companies like Shein and Temu have thrived in the U.S. due to a tariff exemption allowing packages worth under $800 to enter without duties. This loophole, known as the de minimis exemption, has significantly contributed to airfreight emissions as the majority of these low-cost goods are shipped by air. The recent decision by President Trump to close this loophole may unintentionally reduce the carbon footprint linked to the fashion industry, as air shipping is far more carbon-intensive than ocean freight, with a ratio of 68 to 1.
The de minimis exemption allows goods valued under $800 to enter the U.S. without tariffs, significantly impacting airfreight emissions and the competitive landscape for retailers.
Packages flown from China account for 1.36 billion shipments a year under the de minimis rule, pointing to substantial carbon emissions linked to fast fashion.
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