MoneyDonald TrumpThe 'de minimis' tax rule allowed imports that are worth under $800 to enter the US duty-free - but this came to an end last year09:41, 27 Jul 2026Online fashion giant Shein says it swung to a $99million (£74.1million) quarterly loss after US President Donald Trump removed an import duty exemption on small packages.‌The "de minimis" tax rule allowed imports that are worth under $800 to enter the US duty-free - but this came to an end last year.‌It means all commercial shipments are now fully subject to standard customs duties and tariffs, regardless of their value. Companies such as Shein have benefited from the “de minimis” rules to sell and ship low-value items from China.‌Shein said: “Since May 2025, the removal of the US de minimis exemption has had an adverse impact on our sales in the US and the overall growth of our net revenues.”It said it had “since observed signs of normalisation in consumer purchasing behaviour and sales trends in the US”.The loss compares against profits of $395million (£296 million) a year earlier for Shein. Its sales edged 1.1% higher to $9.05billion (£6.78billion).‌Shein said its first quarter loss - which comes ahead of its planned stock market debut in Hong Kong - also reflected a $328million (£246million) hit from an accounting change for special investor shares.How 'de minimis' tax rules work in UK and EUIn the UK, overseas retailers can send small parcels worth less than £135 without paying import duties. The former Chancellor Rachel Reeves previously announced plans to bring forward an end to this loophole from 2029 to October 2028.The EU started applying a temporary €3 customs duty per item on low-value goods worth up to €150 from this month. This will remain in place until July 2028, after which normal customs duties will apply.‌Shein added that the EU’s removal of the small parcel exemption may also have a “material adverse effect on our business, financial condition and results of operations”.It warned: “Although it remains too early to fully assess, it is possible that trends in the EU could be generally in line with or exceed the impact observed in the US after the removal of the US de minimis exemption.“The group said it was looking at raising prices across the US and Europe to offset the sales impact.Article continues below“In response to the increased duties and taxes, we are pursuing a wide range of options, including increasing our prices in the US market to offset a portion of the increased costs,” it said.Choose Daily Mirror as a 'Preferred Source' on Google News for quick access to the news you value.‌European UnionDonald Trump