De minimis: China’s Shein workshops suffer as US tightens shipment rules
Garment factories in Nancun village, Guangzhou, a key supplier for e-commerce giants like Shein and Temu, are experiencing a significant slowdown, with many businesses remaining closed or operating at reduced capacity after the Lunar New Year holiday. This downturn is attributed to the United States' move towards ending the "de minimis exemption," a tax exemption for small parcels, impacting the tariff levels faced by these factories' products in the US market.
Factory owners in the area, like Zou Deli, a long-time Shein supplier, report a stark contrast to previous years, with a lack of orders leading to idle workstations and reduced staff. While many are unfamiliar with the specifics of the "de minimis exemption," they are already feeling the economic chill as this policy change threatens their competitiveness and access to the crucial US market.
via SCMP Full Text Feed
Garment factories in Nancun village, Guangzhou, a key supplier for e-commerce giants like Shein and Temu, are experiencing a significant slowdown, with many businesses remaining closed or operating at reduced capacity after the Lunar New Year holiday. This downturn is attributed to the United States' move towards ending the "de minimis exemption," a tax exemption for small parcels, impacting the tariff levels faced by these factories' products in the US market.
Factory owners in the area, like Zou Deli, a long-time Shein supplier, report a stark contrast to previous years, with a lack of orders leading to idle workstations and reduced staff. While many are unfamiliar with the specifics of the "de minimis exemption," they are already feeling the economic chill as this policy change threatens their competitiveness and access to the crucial US market.
via SCMP Full Text Feed
