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Temu and Shein Face Global Crackdown on Cheap Goods and E-Commerce Practices

Photo:© Dimarik16/Dreamstime.com

By Middle Land Staff

August 2, 2025
3:36 pm
Los Angeles, CA

Chinese e-commerce platforms Temu and Shein are under growing international pressure for their role in distributing cheap goods globally. In Europe, the EU accused Temu of failing to prevent the sale of illegal and unsafe low-cost products, citing preliminary violations of the Digital Services Act. The company could face steep fines if it doesn’t improve oversight and consumer protections. Meanwhile, Mexico has sharply raised tariffs on inexpensive imports from China — including goods sold by Temu and Shein — from 19% to 33.5%. The move targets cheap goods from countries lacking a free trade agreement and comes amid U.S. pressure to curb trade circumvention through Mexico. In the U.S., former President Donald Trump signed an executive order ending the de minimis tariff exemption, which had allowed imports under $800

Chinese e-commerce platforms Temu and Shein are under growing international pressure for their role in distributing cheap goods globally.

In Europe, the EU accused Temu of failing to prevent the sale of illegal and unsafe low-cost products, citing preliminary violations of the Digital Services Act. The company could face steep fines if it doesn’t improve oversight and consumer protections.

Meanwhile, Mexico has sharply raised tariffs on inexpensive imports from China — including goods sold by Temu and Shein — from 19% to 33.5%. The move targets cheap goods from countries lacking a free trade agreement and comes amid U.S. pressure to curb trade circumvention through Mexico.

In the U.S., former President Donald Trump signed an executive order ending the de minimis tariff exemption, which had allowed imports under $800 to enter duty-free. The change — effective August 29 — applies to all countries and is aimed at stopping tariff evasion and illicit shipments of synthetic opioids. Chinese sellers, particularly Temu and Shein, had been the biggest beneficiaries of the exemption, allowing U.S. consumers to buy cheap goods online without paying import taxes. The White House cited national security concerns and abuse of the exemption as justification for bypassing a 2027 congressional deadline and fast-tracking the rule.

Together, these actions mark a global shift toward tighter regulation of low-cost cross-border retail and a direct challenge to China’s dominance in online commerce.

In 2024, over 1.36 billion parcels entered the U.S. duty-free under the de minimis exemption, which allows imports under $800 to bypass tariffs. Temu and Shein accounted for more than 30% of these shipments—roughly 400 million packages—valued at an estimated $46 billion.

In July 2025, Mexico further raised tariffs from 19% to 33.5% for low-value imports from countries without trade agreements—amplifying the impact on platforms like Shein, Temu, and AliExpress.

The additional tariffs include obligations for platforms to register with Mexico’s tax authority (SAT), obtain electronic signatures, maintain a local fiscal address, and appoint a legal representative—reflecting tighter regulatory control over foreign e-commerce entities.