Since President Donald Trump imposed 20-percent tariffs on goods inbound from China, companies have been working to compensate for the costs that could bring, both to their own businesses and to their consumers.
Shein, which ships many of its own products from China-based facilities, could be subject to tariffs if or when it imports products en masse. But in most cases, Shein ships individual orders directly to consumers because of its on-demand manufacturing model. In the U.S. market, the provision that helps make such an operation feasible hangs in limbo.
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Earlier this year, when Trump announced he would pull back de minimis, a trade exemption that allows some parcels valued at less than $800 to enter the country duty free, all eyes turned sharply to Shein and Temu, two companies that notoriously capitalize on the de minimis provision—though legacy brands and retailers do, too.
Trump’s de minimis decree was quickly reversed and put on hold until his administration can figure out a way to adequately collect the duties that would come from the millions of packages that come in via de minimis each day. In 2024, CBP saw more than 1.3 billion packages enter the U.S. under de minimis.
Shein doesn’t seem to be sweating the potential for change. The AFP reported that Donald Tang, Shein’s executive chairman, said the company will work to provide the best possible experience for its customers despite trade uncertainty.
“We will find a way to deliver the goods,” he reportedly said, noting that Shein’s “business model” has helped it successfully navigate other unexpected global trade disruptions, like the COVID-19 pandemic.
According to its 2023 impact report, Shein has diversified some of its manufacturing to Brazil and Turkey. Reports earlier this year suggested the company had asked some of its China-based suppliers to migrate to Vietnam, though tariffs may come to the fore there, too.
The company has also participated in the U.S. Customs and Border Protection (CBP)’s Section 321 Data Pilot, which uses data provided by the company to expedite clearance for de minimis shipments.
And per the AFP, Tang said the company will continue to devise strategies to meet the needs of the business.
“We’re not focusing on customs policy,” Tang reportedly said.
But Shein’s lobbying records may sing a different tune on where the company’s interests lie, at least when looking back at last year’s efforts.