- Temu and Shein will be getting more expensive come 25th April 2025.
- The companies are blaming increases to their operating expenses thanks to sweeping export tariffs from the US.
- Other international companies will likely be increasing their prices in the coming months, including for South Africans.
What is the loophole that makes them profitable?
I believe they are referencing the de minimis tax rule that exempts items below $800 from import tax.
Trump did end the de minimis rule. The executive order was made April 2nd; the loophole closes May 2nd. https://www.cnbc.com/2025/04/03/de-minimis-trade-loophole-to-end-may-2-white-house-says.html
The other reply is correct, they get crazy cheap shipping rates by sending small things. Like every Temu package costs taxpayers money to subsidize it