A key trade exemption between the U.S. and many of its biggest trade partners appears to be no more. This time, though, there may be environmental benefits, as analysts say its elimination is expected to have a big impact on one industry that greatly affects the planet: fast fashion from China.
What's happening?
On Feb. 4, the White House enacted new tariffs, paused them on Feb. 7, and then enacted them again on March 4, which included eliminating the de minimis trade exemption.
De minimis became law in the U.S. through the U.S. Tariff Act of 1930, with the goal of letting people and small businesses skip import fees for small shipments. The original amount was $200 and was raised to $800 in 2016.
While it was beneficial for consumers who wanted to order a small item for their home without paying huge tariffs, it was greatly overutilized by the fast-fashion industry. Shipments under $800 rose from 153 million to 1 billion between 2015 and 2023, according to the White House.
Why is the ending of de minimis important?
Fast fashion has made buying cheap clothing from overseas too easy, offering clothes for as little as a few dollars each and therefore encouraging a larger haul per customer. To be able to sell so cheaply, the clothing is made to deteriorate, or at least not made to last, causing Americans to toss 82 pounds of clothing every year, on average.
While these extra few dollars of tariffs might make companies like Shein and Temu absorb the costs with small price increases or find an alternate route to keep consumers, sustainability advocates are hoping for a change in consumer behavior.
Shein chairman Donald Tang reportedly attempted to downplay the effects, saying, "We will find a way to deliver the goods," but industry analysts believe it will strike a major blow to these companies' bottom lines.
"The U.S. tariffs on Chinese imports could be a blessing in disguise for sustainable fashion brands," Rodica Murphy, a sustainability consultant based in Cheshire, England, shared with Trellis. "Fast-fashion behemoths like Shein and Temu, who churn out ultra-cheap, disposable clothing at breakneck speed, now face higher costs. And let's be honest — it's about time."
The CEO of American Circular Textiles, Rachel Van Metre Kibbe, said she is also excited about the potential of this new policy.
"If tariffs make new clothes pricier, people will lean even harder into resale, rental, and repair," she told Trellis, formerly known as GreenBiz. "That's already happening, but this could pour fuel on the fire."
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Would you be more likely to shop at a store that paid you for your old stuff? Click your choice to see results and speak your mind. |
Absolutely 💯 What can I do about this?
Costs are rising in all aspects of our lives, and consumers are looking to cut costs everywhere. If buyers are upset about the surcharges on their supposedly inexpensive hauls, you could encourage them to shop secondhand locally, online with thrifting retailers like ThredUp, or to support sustainable brands that produce items that have no planned obsolescence.
Shein sends nearly 1 million packages a day to the U.S. If Americans can be persuaded to cut back, that would make a big environmental impact. If you are looking to break up with fast fashion, check out TCD Guide for more.
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