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An industry expert predicts Shein will see its own costs and profitability impacted by the de minimis loophole closure. Credit: Yau Ming Low / Shutterstock

A US exemption that allowed imported goods valued at $800 or less from China or Hong Kong to enter the US duty-free ends on 2 May.  

Items within this value range sent through the international postal network will incur a duty rate of 30% of the item’s value or $25 per item, whichever is higher. This rate will escalate to $50 per item after 1 June. 

Transport entities responsible for moving these mail parcels are obligated to provide shipment information to the US Customs and Border Protection (CBP) agency, uphold an international carrier bond that guarantees the payment of duties, and pay these duties to CBP according to a predetermined timetable. 

The CBP has the authority to demand a formal entry for any postal parcel in lieu of the designated duties. Within a 90-day timeframe, the Secretary of Commerce is tasked with delivering an analysis on the effects of this order, as well as evaluating the potential expansion of these regulations to include packages originating from Macau. 

GlobalData apparel analyst Louise Deglise-Favre explains companies like Shein and Temu could find themselves competing with Walmart, Target, and Costco for consumers. She adds that at some point those cost surges will need to be passed on to the consumer.

The US fashion sector shared its support for US President Donald Trump’s temporary pause on tariffs for most countries, but it is concerned that high tariffs remain on China.  

The sector argues there needs to be a more definitive and extensive strategy to reinstate stability and cost-effectiveness across the global fashion supply chain. 

The American Apparel & Footwear Association (AAFA)’s president and CEO Steve Lamar explained the current approach continues to impose an untenable levy on imports from China, which is a significant trade partner for the US apparel industry. 

He said that if these elevated tariffs are maintained, including those under President Trump's Section 301, it could result in increased prices for everyday clothing items, shoes, and accessories. 

Plus, it could escalate expenses for US manufacturers dependent on specific materials and products that are only available from China. 

Myanmar Garment Manufacturers Association (MGMA) says approximately 100,000 garment workers were affected by the 7.7 magnitude earthquake that struck on 28 March 2025. 

MGMA’s managing director Aye Mi Shein explains that out of the three major regions hit by the earthquake (Mandalay, Sagaing and Nay Pyi Taw region), most garment factories are located in Myanmar’s second largest city, Mandalay. She adds that most of the factories “which are local productions and home textiles” are now “not operated due to the earthquake strike”. 

She estimates that 100,000 factory workers relying on the garment factories are now unable to work due to facilities being unable to operate. 

However, she suggests there is less of an impact on the international garment sector that works with CMP [Cut, Make, and Package] and brands. 

In terms of donations, MGMA welcomes any immediate financial assistance and continues its call for help.

The Moroccan government's fashion and textile industry lead official believes the country is well placed to increase sales to its key European nearsourcing markets. 

The Moroccan government’s fashion and textile chief is also keen to reassure European buyers that its clothing and textile manufacturers follow high social performance standards. 

Taha Ghazi, the director of the textile and leather industries within the Moroccan ministry of industry, trade and the green and digital economy said: “Morocco has made a lot of advances in the area of HR in terms of the respect of our workers and their rights.” 

Most notably that includes providing health insurance, with the World Bank announcing in March that it would provide $600m financing for new social reforms, including expanding mandatory health insurance, extending free health insurance to vulnerable populations and overhauling healthcare services.

The Cotton Campaign has called on the Uzbekistan government to strengthen reforms to tackle structural problems that are perpetuating risks of forced labour in the country's cotton production. 

This appeal follows the release of a report by the Cotton Campaign's frontline partner, Uzbek Forum for Human Rights, which highlights financial difficulties faced by farmers in Uzbekistan and the alleged persistence of forced labour risks due to government control over the cotton harvest. 

According to the report titled ‘There Is A Lot Of Cotton, But No One To Pick It,’ farmers are struggling to pay competitive wages for voluntary cotton picking due to economic pressures and government interference. 

It claims that although systemic state-imposed forced labour was previously abolished, coercive practices continue within the cotton production system.