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.