The news: The Biden administration plans to restrict the de minimis exemption, which allows shipments valued at $800 or less to enter the US without duty or much scrutiny.
Under the new rule, about 70% of Chinese textile and apparel shipments will be subject to tariffs and must go through more formal channels to enter the US, increasing financial pressure on companies like Temu, Shein, and Alibaba.
Why it matters: This change could especially handicap China-founded ecommerce companies like Temu and Shein, making it harder for them to ship to the US.
