Two of Gen Z's favorite shopping platforms for cheap goods could get more expensive in the near future. On September 13, the Biden administration announced it was taking steps to reduce the "abuse" of a trade law that has allowed the goods of many companies, including popular Chinese e-commerce companies Shein and Temu, to avoid taxes and tariffs when they enter the US. The trade provision, called " ," allows US consumers to avoid paying these import fees on direct-to-consumer shipments of less than $800.
In fact, a House Select Committee published last year estimated that more than 30% of packages shipped to the US under the de minimis provision came from Shein and Temu. The administration's announcement included a new rule proposal that would remove this exemption for many Chinese imports, including clothing products. These imports would become subject to import taxes and tariffs — potentially leading to higher prices for the many Americans who buy apparel, home decor, or electronics from the likes of Shein and Temu.
If Shein and Temu's costs rise, this could hit Gen Z the hardest. An estimated 40% to 45% of Shein and Temu's US customers are Gen Z, Chad Schofield, cofounder of the e-commerce logistics management platform BoxC, told Business Insider. He said he wouldn't be surprised if the proposal sparked some backlash among young Americans.
"Nineteen-year-old girls will scream bloody murder if it's going to be more expensive," he joked. If the proposal goes into effect, .