TAIPEI (Taiwan News) — Consumer prices on popular e-commerce platforms Shein, Temu, and Amazon Haul are set to rise in the US after Trump’s tariffs on Chinese imports. 

Along with imposing the 10% tariff on Chinese imports, the US removed Section 321 de minimis, a trade loophole to ship packages under US$800 (NT$26,285) duty-free. About half of all goods shipped under de minimis came from China, per Reuters. 

Shein and Temu made up 30% of all packages shipped under de minimis to the US. The two platforms became popular due to their low prices enabled by the provision.

The crackdown will also hurt Amazon Haul, a small portion of Amazon’s larger business, which allows shoppers to buy cheap products from Chinese sellers. However, Amazon as a whole is likely to benefit since the new rules disproportionately affect Temu and Shein, said the Financial Times.

According to D.A. Davidson analyst Gil Luria, eliminating de minimis allows Amazon to compete with Shein and Temu for quality, price, and shipping speeds. 

“Closing the loophole is favorable to Amazon,” added Harvard Professor Andy Wu. He said the company “would preferably purchase in bulk . . . to get the most value out of its logistics system.” 

Shein and Temu are trying to adapt by sourcing products from countries outside China and opening warehouses in the US. 

Meanwhile, the companies expected to take the biggest hit are small and mid-sized retailers, which rely more on sourcing from China and have less capacity to adapt than their bigger competitors.