Fashion Fans Pay Price for Trump's China Tariffs
Trump's latest tariffs on Chinese goods have dealt a blow to budget-conscious fashion shoppers. The closure of the "de minimis" exemption means that packages shipped from China under $800 will now be subject to import duties.
This move has sparked outrage among Chinese discount retailers like Shein and Temu, which have relied on this loophole to offer rock-bottom prices. The exemption's 2016 expansion boosted their growth significantly, contributing to 90% of all shipments entering the US.
Trump's action is also intended to address concerns about drug trafficking and unfair competition from Chinese manufacturers. However, it is expected to have a significant impact on consumers, particularly those from poorer and minority households who rely heavily on these retailers.
Tariffs and administrative fees on Chinese goods could add up to $20 per package, costing consumers an estimated $11.4 billion annually. The legality of these tariffs is questionable, given the lack of precedent for using the International Emergency Economic Powers Act to impose them. Several e-commerce companies are expected to challenge the tariffs in court.