Editorial Note: Opinions and thoughts are the author’s own and not those of AFROTECH™.
While President Donald Trump has delayed the tariffs on Canada and Mexico for another month, tariffs have already been imposed on China.
Tariffs on China include a 10% tax, along with closing a loophole that helped boost China-owned brands like Temu and Shein. When a foreign shipment arrives, it goes through customs and gets inspected, and the importer has to pay an import tax depending on the size of the shipment. For almost a century, there’s been a loophole where small packages under a certain value would be exempt from that tax, called “de minimis.” Ten years ago, Congress expanded the exemption to include packages worth under $800.
Stores like Temu, Shein, and Chinese drop shippers that sell on Amazon and the TikTok Shop have used the loophole to their advantage. The majority of retailers ship products in bulk to U.S. warehouses as they go through the traditional customs process. Shein and Temu ship directly from Chinese suppliers to customers. The loophole has saved these companies millions of dollars. It’s also part of the reason that companies like these have earned a reputation for selling lower-priced items.
Both companies have grown in popularity over the past few years, garnering a large, and loyal, following — along with a bit of controversy.
“Fast fashion” is a term used to describe clothing that is rapidly produced to keep up with changing style trends. Their products are usually made with cheap materials and sold at a cheaper price. Stores like H&M, Forever 21, Zara, and now Shein fit this description. But while customers may praise their lower-priced clothing, the retailers have also faced criticism for their environmental impact. Fast fashion consumes a lot of water, and, as of 2025, brands like Shein and Temu are the biggest culprits.
Since Trump has raised tariffs on China, these once cheap stores may start raising prices. Shein and Temu haven’t commented on the tariffs and how they will respond. They could try to find their own loopholes to avoid the tariff tax or, like other stores, begin bringing their prices up. Consumers who shop at Shein or Temu may think twice about ordering from them if prices don’t stay the same. Trump tariffs could alter the fast fashion industry, as Shein has reigned king for the past few years. While brands like Zara and H&M will survive the trade war, Shein could see sales plummet. But with all the damage Shein and Temu have caused, would that necessarily be a bad thing?
