Companies like Temu and fast-fashion giant Shein Group are bracing for a 120 per cent tariff on many of their products due to the US government’s decision to end the “de minimis” exemption for small packages from mainland China and Hong Kong. Some Amazon shipments also qualify for that exemption, but the company also buys goods in bulk, which it sends to its US warehouses.
Amazon launched its Haul service – which ships items directly from sellers, including in China – last year, a response to the rise of Temu, the low-cost shopping app that gained traction despite long shipping times. Temu has thrived in part thanks to duty-free shipments on goods valued under $US800. Amazon’s prospective import charge disclosure was related to the end of that de minimis exemption, not the White House’s tariff plans, according to a person familiar with the matter.
Exporters in recent years had capitalised on the exemption, which allowed goods valued at under $US800 to enter the US without tariffs or customs duties.
Bessent said that any move to highlight tariffs was unfair when the costs of policies implemented by other administrations — including regulations — weren’t broken out.
“The big tax on consumers that goes unnoticed is deregulation or regulation, and we are deregulating and bringing that down,” Bessent said. “So you know, from a household income point of view, we would expect real purchasing increases that we’ve seen over the first 100 days, and we would expect that to accelerate.”
A CNN poll released this week showed 59 per cent of the public believe Trump’s policies have made the economy worse, with six in 10 believing his efforts have increased their cost of living. Nearly seven in 10 of survey respondents say they believe an economic recession is somewhat likely in the next year.
Leavitt declined to answer when asked if the Punchbowl report had strained the relationship between the president and Bezos, who has sought to curry favour with Trump in recent months. Bezos and Trump frequently clashed during the president’s first term over the billionaire’s ownership of the Washington Post.
Later Tuesday, as he departed the White House, Trump expressed a favourable view of the Amazon founder. “He’s a good guy,” the president said. “I’ve gotten to know him over the last couple of years, and he’s done a fantastic job.”
Bloomberg
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