Who Wins Without De Minimis?
It may be relatively good news for large US retailers like Walmart, since they’ll have the size needed to withstand these headwinds and can benefit from the reduction in competition.
After all, fast-fashion online retailers like Temu and Shein may see valuations drop, since their cost structure depended on the de minimis exemption. Low-value China and Hong Kong exports reached $66 billion in 2023, a number that’s now not likely to be repeated any time soon.
It’s also good news for many US-based companies, which may be able to produce domestic versions of now-costly products, although constaints including raw materials and climates will still impact them.
US-produced goods may eventually fill the gap in the market for lower-priced products, though these companies may lack the competition that could in theory push them to create higher quality goods.
