The Biden administration is implementing new regulations targeting Chinese e-commerce giants Shein and Temu. This move comes in response to a significant rise in low-value shipments entering the U.S. without incurring import duties and processing fees from companies.
A press release from the White House indicated that the administration aims to crack down on businesses that 'abuse' a trade rule allowing products valued under $800 to be imported without thorough inspections. The proposed regulations will prevent overseas shipments of products subject to tariffs between the U.S. and China from qualifying for this duty exemption.
Photo: Dreamstime.
In response to the new proposals, Temu stated that its rapid growth cannot solely be attributed to the existing regulations. Since its launch in September 2022, the company has focused on providing consumers with a wide range of quality products at affordable prices. Temu's business model eliminates unnecessary intermediaries, allowing them to lower prices for customers.
The new regulations reflect growing concerns about the implications of unchecked e-commerce and the impact on domestic markets. Companies like Temu and Shein will need to adapt to the changing landscape of international trade.
Source: www.dagenshandel.se