Our small packages Maas in the law to close to push prices for Shein and Temu

A tax -free Maas in the low value packages law is about to be closed by President Donald Trump, which increases prices for American customers of companies such as Shein and Temu.

The Chinese online retail giants relied on the so -called “the minimis” exemption to sell and send items with low value directly to the US without having to pay tasks or input tax.

Proponents of the Maas in the law, which applied to packages with a value of less than $ 800 (£ 600), claim that it helped to streamline the customs process.

But both Trump and his predecessor, Joe Biden, said that American companies was damaged and used to smuggle illegal goods, including drugs.

The minimis is a Latin term, which literally translates into “the smallest”.

In this context, it refers to an American trading rule that was established in 1938 to allow tourists returning to the US to bring souvenirs to $ 5 (about $ 112 in today’s money) from abroad without explaining them to customs.

In the 21st century it enabled retailers to send packages worth less than $ 800 to American customers without having to pay tasks or taxes.

Shipments under the exemption account for more than 90% of all freight that enters the US, According to customs and border patrol of the country (CBP).

Chinese online retailers such as Shein and Temu have benefited enormously from the Maas in the law.

Both platforms have attracted millions of American customers with marketing blitzes that have shown their ultra-lower prices

And it was the minimis exemption that helped them offer that deals so cheaply.

Shein and Temu did not immediately respond to BBC requests for comment.

Last month, however, in almost identical statements, rival companies said they have seen operational costs rise “due to recent changes in the worldwide trade rules and rates”, add that they will make “Price adjustments” from 25 April.

In February Trump briefly closed the Maas in the law.

The suspension was quickly paused because customs can, delivery companies and online retailers struggled to adapt to such a big change in the short term.

During the first suspension of the exemption, the American post service has temporarily stopped accepting packages from mainland China and Hong Kong.

The executive order The announcement of the final step said it was aimed at tackling the illegal input of synthetic opioids such as Fentanyl.

It said that many Chinese shippers use misleading practices to hide illegal substances in low-value packages “to use the minimis exemption”.

“These drugs kill tens of thousands of Americans every year, including 75,000 deaths at allocated to only fentanyl,” it added.

According to the executive order, those packages from mainland China and Hong Kong will be subject to import duties from 2 May and the indictment will rise the following month.

The idea is not new. Last year, the BIDEN administration proposed rules to stop “abuse” of the exemption.

“The growing volume of the minimize shipments makes it increasingly difficult to focus and to block illegal or unsafe shipments,” said it.

The move is in accordance with Trump’s policy to split up goods from China.

Since the return to the White House in January, Trump has imposed taxes of a maximum of 145% on Chinese input. His administration said in April that when the new rates are added to existing, the taxes on some Chinese goods can reach 245%.

The American authorities have also blamed the success of companies such as Temu and Shein for placing tensions on border authorities, because the number of packages that came in the US under the Maas in the Maas, which rose about 140 million a decade ago to more than one billion last year.

Even before these packages were subjected to import tax, American consumers saw prices rising.

Shein and Temu began to draw up the prices for their American customers prior to the Deadline of 2 May “due to recent changes in the worldwide trade rules and rates”.

The American Action Forum, a judicial policy group, estimated last year that the removal of the exemption would result in “$ 8 billion to $ 30 billion in extra annual costs that would ultimately be passed on to consumers”.

Chinese online retailers have also benefited from similar rules in the UK and the European Union to reach millions of customers.

There are concern that the American action could lead to cheap goods from China that enter the UK.

In a movement that reflects the American action, The VK has announced an evaluation of the input of low value that enters the country.

In the UK, the current rule enables packages to send to the UK worth less than £ 135 without making import tax.

Chancellor Rachel Reeves said that the cheap goods “undermine the British High Street and British retailers”.

The European Union has also called on Member States to delete dutifully exemptions for packages worth less than € 150 (£ 127.50; $ 169.35)

And in February the EU proposed a new reimbursement for plots that were sent from online retailers in the block.

Which means that consumers in the UK and the EU can soon also see prices rising.

Packages that arrive in the US under the exemption are inspected in the same way as other goods, including controlled for illegal substances. And most synthetic opioids are brought to the country by civil servants by the border with Mexico.

Some experts think that ending the exemption will do little to curb illegal drugs and not tackle the challenges of American manufacturers.

There are also worries that the move will create more work for our border officials, who have already been stretched while trying to stop drug smuggling.

According to the pro-open trade association, the National Foreign Trade Council (NFTC), the removal of the Minimis exemption “The Focus of the CBP would throw away from the border, where a vast majority of illegal substances and products enter the country”.

“CBP should hire and train new staff, cost the office millions or ensure that they move agents from the already overburdened southern border,” it added.