SOPA Images via Getty Images

Pricier Imports

Temu and Shein’s favorite import policy is about to disappear

Adios, de minimis loophole

9/13/24 9:55AM

Last month, we discussed a proposal from five US senators to crack down on Chinese e-commerce companies taking advantage of the "de minimis" loophole to ship billions of dollars of goods to the US, duty-free.

The TL;DR: The US's Tariff Act of 1930 established a de minimis threshold that allowed low-cost imports to enter the country duty-free and tariff-free to expedite transit through customs. As recently as 2014, the total value of goods entering the country through de minimus was still under $1 billion, but the emergence of fast fashion e-commerce brands, especially in China, has caused an explosion in de minimis shipments, with more than $40 billion of de minimis imports entering the country each year since 2019. A 2023 congressional investigation showed that in 2022, 30% of de minimis shipments came from Shein and Temu alone, and 62% came from China.

As previously mentioned, the de minimis loophole could be costing the US government $400 million in missed duty fees, and today, the Biden administration announced that it would be cracking down on this loophole. According to The Wall Street Journal, around 70% of Chinese textile and apparel shipments will now be subject to tariffs that they were previously avoiding.

The de minimis loophole allowed Temu and Shein to pass cost savings on to their customers, but with this policy change, users will likely see prices tick up to account for the new fees. Not great news for Temu, especially, which has seen its app downloads flatline in the US.

Kodak’s new bet is the blind-box boom as it faces doubts over its survival

The film giant once dominated photography. Now it’s banking on Gen Z’s latest obsession to stay relevant.

Hyunsoo Rim4h

Max Knoblauch

9/12/25

Amazon is testing adding GM electric vans to its EV delivery fleet dominated by Rivian

Rivian may have some competition in its electric delivery van division: Bloomberg reports that Amazon is testing a small number of GM’s BrightDrop vans for its fleet.

According to Amazon, the test currently only includes a dozen of the vehicles. Amazon’s fleet also contains EVs from Ford, Stellantis, and Mercedes-Benz.

GM debuted BrightDrop in 2021, but the vehicles have struggled to sell and piled up on GM lots due to high prices and steep competition. GM began offering up to 40% rebates on the vehicles this year.

The test comes as Rivian struggles through tariffs and the end of EV tax credits. Earlier this year, it lowered its annual delivery outlook by about 13%. As of June, Amazon said it has more than 25,000 Rivian vans across the US. Earlier this week, Rivian CEO RJ Scaringe said the company is still on track to deliver 100,000 vans to Amazon by 2030 and is “thinking about what comes beyond” that initial target.

GM has sold 1,592 BrightDrop vans through the first half of the year, more than the full-year total it sold in 2024.

Amazon Tests GM EV Delivery Vans in Bid to Meet Climate Goals

GM debuted BrightDrop in 2021, but the vehicles have struggled to sell and piled up on GM lots due to high prices and steep competition. GM began offering up to 40% rebates on the vehicles this year.

GM has sold 1,592 BrightDrop vans through the first half of the year, more than the full-year total it sold in 2024.

GETTING

HOOKED

Chris Stokel-Walker9/12/25

Claire Yubin Oh

soup season

9/12/25

Shake Shack is launching a French onion soup... burger

The fast-casual chain will be hoping premium upsells can fatten up its profit margins.

Nia Warfield

9/11/25

Paramount Skydance reportedly preparing an Ellison-backed Warner Bros. Discovery takeover bid, sending shares soaring

Paramount Skydance is preparing a majority cash bid for Warner Bros. Discovery, The Wall Street Journal reported, sending shares of both companies surging. The Journal’s sources say the deal is backed by the Ellison family, led by David Ellison.

WBD shares were up 30% on the report, while Paramount Skydance jumped 8%.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

Exclusive | Paramount Skydance Prepares Ellison-Backed Bid for Warner Bros. Discovery