Giving an edge: The US has a special trade loophole gives some Chinese brands like Temu and Shein an edge over the US’ own business owners. It’s called “De minimis”

Some facts about De minimis:

• 📦️ Packages $800 or less are exempted from tariffs

• 🚢 1 billion packages entered the US in the fiscal year and 1/3 of these belong to Temu and Shein

• ⌛️ has been in place since 1938 and was only updated in 2015 to increase the $800 limit

Playing Fair: The US is trying to challenge this by pushing for the De Minimis Reciprocity Act of 2023 to level the playing field.

What does it do?

• 📝 Only select countries can use the de minimis channel.

• 🛍️ Only allow express carriers to import into the US to help better prevent counterfeits

• 🔎 Require more information for every package

• 💸 Use the revenue proceeds to establish a fund for reshoring the industry from China