Temu, Shein and other low -cost retailers based in China are increasing prices as the Laguna Minimis expires on Friday.
Earlier this month, President Donald Trump signed an Executive Order (EO) that eliminated Tax free provision at Goodth $ 800 or less imported from China and Hong Kong. The EO states that it is “a critical step to counteract the ongoing health emergency raised by the illicit flow of synthetic opioids in the United States”
The order enters into force on May 2, 2025 at 12:01 AM EDT.
Related: Amazon launches a bargain shop with most items below $ 10: ‘Ultra low prices’
What is the disposition of ‘Los Minimis’?
Low price retailers such as Temu and Shein have been using commercial provision (notable since the 1930s) to help them grow in the United States and help China’s electronic commerce partners to offer lower prices than products made in the United States.
The provision allowed packages worth less than $ 800 to be sent to the United States free of taxes.
According to the data of the US Customs and Border Protection. For comparison, 10 years ago in 2015, that number was 139 million.
How much prices will rise?
According to the EO, a work rate of 30% of its value or $ 25 per article will be added (increasing to $ 50 per article after June 1, 2025).
The difference in cost is based on how articles (s) are sent, according to the New York Times. If a package is sent through DHL or Fedex, it could be up to 145 percent, which causes a shirt that previously cost $ 10 now cost $ 24.50. The shipments of the US postal service will see a 120% tax on the value of the items, or $ 100 per package.
The Trump administration indicates that this adds to the tariffs previously announced on China, now as the high axis of 145%.
