🚨 Biggest eCommerce Change in a Decade 🚨
Biden admin drops a bomb on the de minimis loophole 👇🏼
They propose closing the de minimis loophole that allowed Chinese brands and companies like Shein and Temu to flood the US market with ultra-cheap goods.
Quick "de minimis" Explainer:
The de minimis rule lets shipments valued under $800 enter the US duty-free and with minimal customs scrutiny.
Chinese brands have been leveraging this by shipping directly to US consumers or restocking in small quantities, thereby avoiding tariffs and safety checks.
Here's what this means for you👇🏼
Level Playing Field: Chinese brands could avoid up to 25% in tariffs and safety inspections with de minimis. Without it, they will face the tariffs and be held to US level safety standards.
Shein and Temu Face Headwinds: These companies have benefited from the de minimis rule. They need to adjust strategies and pricing, but don't count them out.
Safer Products: I'm not sure if you've seen some of the clearly unsafe stuff on Amazon (I'm looking at you face mask snorkels), but now products must now come with compliance certificates. This means they must meet US standards, no matter the dollar value of the import.
This is a huge win for US based brands and consumers.
Yes, this still needs to be reviwed and passed.
BUT, this has bi-partisan support as it's something US sellers have been complaining about for YEARS.
The e-commerce landscape is about to look different.
What's your take on this?
Drop your thoughts 👇