Shein and Temu have gained temporary relief as the United States relaxes tariffs on Chinese imports, offering both fast-fashion giants a 90-day window to restock U.S. warehouses and reassess supply chains.
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Under a new agreement effective 14 May, most tariffs on Chinese goods have been cut to 30% for three months. Tariffs on low-value packages, previously taxed at up to 120%, have been reduced to 54%. The "de minimis" exemption, which had allowed small packages to enter the U.S. untaxed, was officially ended on 2 May by President Donald Trump amid concerns about its misuse and economic impact.
Temu had halted direct shipments from China and relied on U.S. stockpiles after the exemption's removal. Jason Wong, associated with the company's logistics in Hong Kong, said Temu now plans to resume bulk shipments, noting that "30% is still high, but compared to 125%, 30% is basically nothing."
Shein, which continues to ship directly from China, includes tariffs in its listed prices and has expanded production to countries like Turkey, Mexico and Brazil, with Vietnam next in line. Coresight Research's Anand Kumar said the tariff reduction would help the companies "increase their shipment volume" and shape long-term strategy.
However, small-package shipments remain challenged. A $100 flat fee per item remains, cancelling a planned increase to $200. Wong believes further relaxation will be needed for Temu to fully resume smaller-value shipments.
U.S. rivals, including Amazon, are also expected to maximise the 90-day tariff window. Cameron Johnson of Tidalwave Solution said: 'All the companies are just going to scramble to get everything they can into the country as quickly as they can. Everybody's in the same boat.'
Source: www.cnbc.com