The U.S. tax loophole that made Shein and Temu rich is changing. What will happen to the brands now? | CBC News
Briefly

The U.S. ended the de minimis exemption on April 2, 2021, impacting how companies like Shein and Temu operate. This rule previously allowed small packages under $800 to enter the U.S. without taxes, significantly lowering costs and allowing for rapid shipping. The change is part of a broader strategy to address illegal drug imports and could push up prices for consumers. Experts suggest that while these companies might face challenges, they are unlikely to be completely eliminated from the market due to altered logistics and pricing strategies.
U.S. President Donald Trump's executive order revokes the de minimis exemption for Chinese imports under $800, changing the landscape for companies like Shein and Temu.
The end of the de minimis rule poses challenges for Shein and Temu, as it was crucial in keeping their prices competitive and operational logistics efficient.
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