How Will Shein and Temu Deal with New Trade Laws – and Amazon Haul?

The 2024 year will probably go down as the time when Shein and Temu truly impacted the U.S. retailing business as their low-price/quick-ship/no-questions-asked model captured American consumers to the tune of billions of dollars in sales.

It may not be quite the same for 2025 as a number of factors are emerging that pose a threat to the way they do business, from government policies to new competition to politics to shoppers perhaps getting over their initial enthusiasm and taking a more realistic attitude towards what they buy. Here’s a quick rundown of the potential changes in the business.

• The de minimis regulations – the duty schedule that allows imported product worth less than $800 to be brought in without being taxed or subject to import fees – have been the lifeblood of Shein and Temu. But multiple pieces of legislation are in front of the outgoing Congress to severely cut back or even eliminate entirely this exemption. President Biden could also make a change in the regulations by executive decision so there are many ways for things to change here. This was a political hot button during the campaign: candidates wanted to provide more protection for traditional U.S. importers and retailers but it was balanced by the popularity with consumers of these platforms. With the election decided, there may still be action taken before the next administration and congress are sworn in.
• That next administration, under President Trump, has made no secret of its feelings on unfair trade practices and while he has not specifically spoken out about the Shein and Temu businesses, his tough stance on China could include revoking these company’s abilities to sell into the American market. Politics could play a big role in what happens to these companies in 2025.
• Finally, there is the introduction of Amazon Haul, a direct competitor to Shein and Temu, over the past month. It means to offer similar merchandise at similar prices and delivery while providing Amazon’s return policy and consumer protection provisions. It’s way too early to say how it will do: many Amazon initiatives, especially ones designed to counter existing companies, have ultimately failed but you can be sure Amazon will put a lot of time and effort – and money – into Haul.

Shein and Temu have had a remarkable track record, quickly becoming important retailers for certain products, including low-cost fashion and home accessories. How long that continues depends on many variables but it’s safe to say their fortunes are likely to change in 2025.