US seeks to slam shut Shein, Temu trade loophole

A group of US House Democrats has called for closing the “de minimis” trade loophole that has allowed Chinese e-commerce firms Shein, Temu and others to evade import tariffs when entering US markets.

US Representatives Rosa DeLauro, Earl Blumenauer and Tom Suozzi on Wednesday sent a letter signed by 126 House Democrats calling on US President Joe Biden to use executive authority to end the de minimis loophole and protect Americans from its reputed growing dangers.

“The urgency of closing the de minimis loophole cannot be overstated. Americans continue to die from mislabeled fentanyl-laced pills that are ordered online, skirt inspection thanks to de minimis and are delivered to Americans’ doorsteps,” the trio said in the letter.

“De minimis imports, particularly from China, also evade most existing trade enforcement mechanisms, including the Uyghur Forced Labor Prevention Act and Section 301 tariffs used to hold trade cheats accountable,” they said.

They also said 18 US textile plants have closed over the past several months due to the flood of imports from China that have entered the US via the de minimis loophole, putting hundreds of American workers out of jobs.

This came after Peter Feldman and Douglas Dziak, two Republican commissioners of the US Consumer Product Safety Commission, an independent agency of the US government, on September 4 asked the commission’s staff to investigate e-commerce platforms Shein and Temu to see whether their overseas suppliers have met their obligations under the Consumer Product Safety Act.

The two commissioners said they are aware of media reports that “deadly baby and toddler products” are easy to find on Shein and Temu. They said they also saw other reports that “thousands of