Shein, Temu, and the US De Minimis Tax Rule: A Looming Showdown

The meteoric rise of Shein and Temu has thrust the US de minimis tax rule—which exempts shipments under $800 from duties and taxes—into the spotlight. Critics argue it fosters unfair competition and potentially allows banned goods entry. While both Shein and Temu claim support for reform, provided it's fair, Congressional bills aiming to alter or eliminate the rule face uncertain futures. Experts suggest the rule's unlikely demise soon, with many retailers adopting a 'if you can't beat 'em, join 'em' strategy, seeking ways to leverage it for cost reduction.