Did you know President Trump Closes Loophole Used by Chinese e-Commerce Giants Shein, Temu, and AliExpress to Offer Cheap Products
If you’re a fan of online shopping, we’re sure you’ve heard of Shein,
AliExpress, and Temu. The trio is famous for offering cheap products to
American buyers.
However, that might not be the case anymore. President Trump just signed a new executive order to get rid of the De Minimis Tax Exemption. So all products coming from Hong Kong and China are bound to be impacted.
The
president shared more details about how many of these companies used to
get foreign packages without paying any kind of duty. This is as long
as they come under a value of $800. Now, that’s not going to be the case
after today, he added.
As per the fact sheet shared by the
White House, all eligible packages will receive taxes at nearly 30% of
the actual value of the product. Now the only positive thing here is
that this tax could replace any other present tariff. In this manner,
clients don’t need to face any kind of double whammy ordeal if Trump
rolls out the 54% on China’s imports beginning next week.
Trump
worked long and hard to suspend this de minimis exemption in February,
but as per the White House, the efforts were put on hold after this
policy resulted in chaos. Some impacts include the US Postal Service
stopping shipments abruptly from China as it rushed to collect taxes on
various packages.
So
after giving the shipping industry so much time to prepare, it’s now
ready to reinstate these orders. They will be collecting tariff revenue
for all goods from the PRC. As of right now, Temu has failed to respond
to any kind of request for comments. What we can confirm is how it might
impact clients the most who cannot run far from Trump’s tariffs.
The
reciprocal tariff plan targets so many nations, including the likes of
India, Malaysia, Vietnam, and Taiwan. In addition, he chose to place
another mega 34% tax on imports arising from China. Therefore, there is
one thing he’s exempted from this policy, and that’s semiconductors. But
the question right now is until when.
Many keep wondering if
this signals the end of Americans purchasing China’s famous products,
thanks to the low costs and great quality associated with them. From
what we’re seeing, that might be the case as these taxes will surely
raise prices.