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US-China Trade War: Donald Trump’s new tariff policy has shaken the fast fashion industry. The US is now ending the tax-free exemption on parcels less than $ 800 from China, which will cause huge losses to Chinese e-commerce platforms like Sheen, Temu and Alixpress. From May 2, these parcels will be charged 120 percent, due to which prices of cheap clothes and household goods are going to increase.
What is the new rule?
According to CNN report, till now there was no import tax on parcels worth $ 800 or less in the US. This is called “de minimis exemption”. Due to this, brands like Shein, Temu, Aliexpress continued to sell clothes and other products at very cheap prices in America. But now this discount has been abolished from May 2.
The Trump administration has announced that 120 percent import duty will be imposed on the parcel coming from China. From June 1, this fee can increase further to $ 200 per parcel. Also, a total of 145 percent tariffs will be implemented on all products coming from China.
Secondhand market benefits?
Online Secondhand Store Threadup hopes that people will turn to old clothes due to fast fashion. The company says that he had demanded the abolition of de minimis exemption for years, as it used to give fashion advantage to fashion. According to the survey of threadup, 60 percent of the Americans say that if the clothes are expensive, they will turn to the secondhand market.
But will people change the habit of tariff?
Fast fashion brands like H&M and Uniclo have shifted their production to countries like Vietnam, Bangladesh, where tariffs have been stopped for 90 days.
What will happen next?
In the next few months, it will be clear whether the tariff will really change the shopping habits of American consumers. At the moment, the magic of fast fashion is still intact, but the secondhand market can get a big benefit from it.
(Tagstotranslate) us-china trade war
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