- Trump eliminates the 'de minimis' exemption, directly affecting Shein and Temu.
- Products imported from China now have to pay tariffs, increasing their prices.
- Chinese companies are looking for alternatives such as establishing warehouses in the US to continue operating.
- Trade conflict escalates as China responds with tariffs against the US
The government of Donald Trump has decided to close the door to shipments of Shein and Temu products, two Chinese e-commerce giants that have dominated the US market with low prices and direct shipping. Revocation of the 'de minimis' exemption, which allowed the entry of packages worth less than $800 without paying tariffs, puts the viability of these platforms at risk in the United States.
The move is part of a broader Trump strategy to reduce the weight of Chinese imports and strengthen national production. However, this change will have an immediate impact on American consumers, who until now could access products at significantly lower prices thanks to the lack of tariffs.
What is the 'de minimis' exemption and why was it key?

The exemption 'de minimis' It was originally designed to facilitate the import of small shipments as gifts or crafts without subjecting them to customs inspections or tariffs. In the United States, The limit of this benefit was $800., allowing the massive entry of products without additional costs.
Shein and Temu took advantage of this legal loophole by shipping their products directly from China to American consumers, without intermediaries and thus avoiding taxes and tariffs which other businesses do pay. But that is about to end.
The immediate effects on online shopping

The elimination of this exemption will mean drastic changes in the prices and delivery times of products purchased at Shein and Temu. Some of the most notable effects are:
- Price increase: Now products will have to pay tariffs, which will increase their costs for consumers.
- Shipping delays:Being subject to customs inspections, delivery times may be considerably extended.
- Less discounts and promotions:The low-price structure that these companies have used until now could be affected, limiting offers.
China responds with retaliation
As expected, the Chinese government has not taken long to react. Beijing has announced an increase in tariffs on American products such as natural gas, coal and agricultural machinery. In addition, investigations have been launched into major US technology companies, in what appears to be clear retaliation.
This escalation in the trade war between the two powers could have repercussions on global trade. Brands like AliExpress could also be affected, since its business model is based on the same eliminated exemption.
What will Shein and Temu do to adapt?

Faced with this situation, both companies have begun to study alternatives to mitigate the impact of Trump's measure. Some strategies include:
- Establish warehouses in the USStoring products within the country would help avoid import restrictions.
- Send from other markets: They could use distribution centers in countries like Vietnam or Thailand to get around the new tariffs.
- Adjust your pricing strategyIn order not to lose competitiveness, they could assume part of the costs instead of passing them entirely on to consumers.
Furthermore, there is a big question mark over the future of these rules should another administration take over the presidency. Depending on the outcome of the upcoming US election, These tariff reforms could be modified or even reversed..
The impact of the new trade policy is generating controversy, with opposing views between those who see it as a protection for American producers and those who believe it will negatively affect consumers. In the short term, what is clear is that buying from Shein and Temu in the US will no longer be as cheap and accessible as it has been up to now.
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