Shen Lu

Many e-commerce companies have used this exemption over the past years. And two big beneficiaries of de minimis have been Shein and Taimu.

She and Taimou use what's called a direct consumer business model. When a U.S. consumer places an order on their website, Taimou or She will just ship the individual order directly to the U.S. consumer. And since their prices are cheap, most of the orders are under $800. Last I checked, the average order value was below $50 for both companies. So most shipments will fall directly

She and Taimou use what's called a direct consumer business model. When a U.S. consumer places an order on their website, Taimou or She will just ship the individual order directly to the U.S. consumer. And since their prices are cheap, most of the orders are under $800. Last I checked, the average order value was below $50 for both companies. So most shipments will fall directly

She and Taimou use what's called a direct consumer business model. When a U.S. consumer places an order on their website, Taimou or She will just ship the individual order directly to the U.S. consumer. And since their prices are cheap, most of the orders are under $800. Last I checked, the average order value was below $50 for both companies. So most shipments will fall directly

under the de minimis exemption so the company does not have to pay taxes on the orders.

under the de minimis exemption so the company does not have to pay taxes on the orders.

under the de minimis exemption so the company does not have to pay taxes on the orders.

And these bulk shipments don't qualify for de minimis. And so the companies end up paying taxes on these shipments when they enter the U.S.

And these bulk shipments don't qualify for de minimis. And so the companies end up paying taxes on these shipments when they enter the U.S.

And these bulk shipments don't qualify for de minimis. And so the companies end up paying taxes on these shipments when they enter the U.S.

It's just the U.S. has been such a crucial market. It's both companies, one of their top markets and wealthier consumers and who buy more frequently from them. So it would be a huge market to lose. And so it's probably going to be a struggle for them to maintain the market to serve the consumers here in the U.S.,

It's just the U.S. has been such a crucial market. It's both companies, one of their top markets and wealthier consumers and who buy more frequently from them. So it would be a huge market to lose. And so it's probably going to be a struggle for them to maintain the market to serve the consumers here in the U.S.,

It's just the U.S. has been such a crucial market. It's both companies, one of their top markets and wealthier consumers and who buy more frequently from them. So it would be a huge market to lose. And so it's probably going to be a struggle for them to maintain the market to serve the consumers here in the U.S.,

Taimou, from a year ago, started recruiting sellers with inventory in the U.S. exactly to mitigate the risk of de minimis going away. So more than a third of Taimou's products sold in the U.S. now are in local warehouses instead of coming in through de minimis.

Taimou, from a year ago, started recruiting sellers with inventory in the U.S. exactly to mitigate the risk of de minimis going away. So more than a third of Taimou's products sold in the U.S. now are in local warehouses instead of coming in through de minimis.

Taimou, from a year ago, started recruiting sellers with inventory in the U.S. exactly to mitigate the risk of de minimis going away. So more than a third of Taimou's products sold in the U.S. now are in local warehouses instead of coming in through de minimis.

Starting in February, Xi'an has talked to some major suppliers and encouraged them to set up production in Vietnam. They've also considered the option of manufacturing in the U.S. But we all know that it's very difficult to shift manufacturing back to the U.S. It could take months and months and months. And it's a lot more expensive to do that.

Starting in February, Xi'an has talked to some major suppliers and encouraged them to set up production in Vietnam. They've also considered the option of manufacturing in the U.S. But we all know that it's very difficult to shift manufacturing back to the U.S. It could take months and months and months. And it's a lot more expensive to do that.

Starting in February, Xi'an has talked to some major suppliers and encouraged them to set up production in Vietnam. They've also considered the option of manufacturing in the U.S. But we all know that it's very difficult to shift manufacturing back to the U.S. It could take months and months and months. And it's a lot more expensive to do that.