Biden and Harris take aim at Shein over loophole that lets it dodge tariffs on small parcels

Shein may be hit by a crackdown in the US over a trade loophole.

President Joe Biden and Vice President Kamala Harris have proposed to change rules that mean the online fashion giant can dodge tariffs on parcels worth $800 or less.

Chinese retailers including Shein and Temu have exploded in popularity over the last few years due to their ultra-cheap products.

Tariff loophole: Chinese retailers including Shein and Temu have exploded in popularity in the US and Europe over the last few years due to their ultra-cheap product

Part of their success comes down to how they can ship products directly to shoppers.

But retail rivals and policymakers, including in Europe and the UK, have criticised related tax loopholes.

Navtej Dhillon, the deputy director of Biden’s National Economic Council, said there has been a ‘drastic increase’ in exempt shipments. 

The number of these imports has increased from around 140m to more than a billion in the past decade, the White House said.

They have made it ‘increasingly difficult to target and block illegal or unsafe shipments coming into the US’, Dhillon added.

In Europe, the European Commission is reportedly getting ready to whack custom duties on parcels shipping from outside the EU.

Currently, goods under €150 can be imported into the European Union from outside it without any duties.

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