President Trump has imposed a 10% additional tariff on goods imported from China, one of the United States' largest trade partners. The tariffs are expected to impact fast fashion brands like Shein and Temu, leading to price increases and shipping delays.
The new order also eliminates the 'de minimis' exception, a loophole that Chinese e-commerce companies used to expedite duty-free shipments worth less than $800. This change will require fast fashion brands to go through U.S. customs, further increasing costs and shipping times.
"At the end of the day, there will be delays and extra cost, and the $2 dress could wind up being $4 and take an extra week to get to you," said James Thompson, e-commerce expert at Equity Value Advisors.
Fashion experts believe that the new policy could encourage consumers to purchase more American-made goods, potentially benefiting brands like New Balance, Buck Mason, Reformation, and Huckberry.