Biden Administration Targets Trade Loophole Used By Shein and Temu to Keep Prices Low. What This Means for Consumers

Benzinga

The Biden administration's plans to restrict the de minimis trade law loophole could impact the prices of Shein and Temu products. This loophole allows items under $800 to bypass tariffs. Retail experts estimate that prices could rise by at least 20%, narrowing the gap between these retailers and competitors. The de minimis exemption has been under scrutiny for enabling these e-tailers to avoid U.S. customs duties, and lawmakers are pushing for reform. Shein and Temu dispute that their business models rely on this exemption.

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00:00It's Benzinga, and here's what's on the block.

00:02The Biden administration's plans to restrict the De Minimis trade law loophole could impact

00:07the prices of Shein and Timu products.

00:10This loophole allows items under $800 to bypass tariffs.

00:14Retail experts estimate that prices could rise by at least 20 percent, narrowing the

00:18gap between these retailers and competitors.

00:21The De Minimis exemption had been under scrutiny for enabling these e-tailers to avoid U.S.

00:26custom duties, and lawmakers are pushing for a four.

00:29Shein and Timu dispute that their business models rely on this exemption.

00:33For all things money, visit Benzinga.com.

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