Super cheap clothing from China may become more expensive underneath President Trump's new tariffsand help Amazon compete from overseas.

On the same day, President Donald Trump took effect on Tuesday with additional tariffs on all Chinese goods Agree to stop Tariffs on Mexico and Canada for 30 days.

Mr. Trump's executive order, in addition to imposing a 10% tax on Chinese imports, suspended a lesser-known tax exemption that allows goods with minimum value (valued below $800) to be free of responsibility. The order created a wrench in a business model based on Chinese retailers such as China and temu, which previously exempted from any tariff and customs checks due to a De Minimis loophole.

Juozas Kaziukenas, founder of e-commerce intelligence firm Marketplace Pulse, told the Associated Press that rule changes could also lead to delivery delays, as these packaging must now go through customs.

Neither Shein nor Temu responded to a request for comment on how the new rules would affect their business.

De Minimis' waiver helps Chinese e-commerce giants keep costs low and attracts young American consumers with contemporary styles at low prices. The companies ship directly to consumers, allowing them to compete with domestic players, including Amazon, which launched its own answer to Temu and Shein last year, called Amazon Haul. Amazon Haul is strictly available on the Amazon App, which includes items shipped in China for less than $10 and sells items similar to those sold by Shein and Temu.

How much can the price rise?

Now that Shein and Temu are bypassing the existing duties they once bypassed, plus the new 10% tariffs imposed by Mr. Trump and the taxes that may be collected by customs authorities, these additional fees can be passed on to consumption. .

While price increases are negligible, shipping delays caused by forcing customers to inspect packages may shut down some shoppers.

"If the tariffs continue, we can see higher prices for electronics, clothing and other items," Ryan Young, a senior economist at the School of Competitive Enterprises, told CBS MoneyWatch. "There will be frustrating." Delay, which will hinder the business model of Temu, Shein and other low-cost suppliers.”