Biden Administration Targets Loophole Allowing Shein, Temu to Evade Import Duties, Proposes New Rules to Limit Duty-Free Chinese Imports

The Biden administration announced steps to curb the abuse of the de minimis trade law, which allows shipments valued under $800 to enter the U.S. without paying duties. A new rule proposal would ban products subject to U.S.-China tariffs from using the exemption. Officials highlight that Chinese-linked online retailers, like Shein and Temu, have exploited this loophole to ship goods directly to consumers, skirting tens of millions in import duties. The White House also called for more data requirements for these shipments and urged Congress to overhaul the de minimis law.