US Takes Aim At Shein and Temu With New Import Rule Proposal

The Biden administration is proposing new regulations to restrict the "de minimis" exemption, which allows low-cost imports under $800 to enter the US without tariffs. This exemption has been exploited by Chinese e-commerce companies like Shein and Temu to ship goods without paying tariffs. The proposed changes would subject certain shipments to closer inspection and tariffs, aiming to protect American consumers and businesses from unfair competition. The new rules would prevent companies from claiming the exemption if their goods are subject to existing tariffs on Chinese products, steel, aluminum, washing machines, and solar panels. Additionally, these shipments would face increased scrutiny from US Customs and Border Protection. The Biden administration cites concerns about consumer safety and regulatory compliance as reasons for the proposed changes. Shein, headquartered in Singapore, and Temu, based in China, both rely heavily on Chinese manufacturing for their low-cost products. The proposed regulations aim to level the playing field for American businesses and protect consumers from goods that may not meet safety standards.