Dick Thomas via flickr
As per the sources from the agency, the firm has provided incentives to suppliers, including a 30% rise in purchase prices.
According to the sources, the firm began pursuing this path several months back and has recently ramped up its activities. Shein is attempting to lessen the effects of new US tariffs on products from China in this manner: specifically, we refer to US taxes on low-value packages.
In early February, US President Donald Trump temporarily removed tariffs on certain Chinese products, but in the future, the exemption for importing packages valued under $800 (known as the de minimis rule) will be eliminated.
According to Bloomberg, this will pose a significant issue not just for Shein, but also for its competitor, the Chinese trading platform Temu. The agency reports that Shein provides Chinese suppliers, who set up production lines in Vietnam, with a 15-30% rise in purchase prices and larger order quantities.
Furthermore, the company consents to extend production time and is prepared to assist in building production facilities and transporting materials from China to Vietnam.
source: bloomberg.com
According to the sources, the firm began pursuing this path several months back and has recently ramped up its activities. Shein is attempting to lessen the effects of new US tariffs on products from China in this manner: specifically, we refer to US taxes on low-value packages.
In early February, US President Donald Trump temporarily removed tariffs on certain Chinese products, but in the future, the exemption for importing packages valued under $800 (known as the de minimis rule) will be eliminated.
According to Bloomberg, this will pose a significant issue not just for Shein, but also for its competitor, the Chinese trading platform Temu. The agency reports that Shein provides Chinese suppliers, who set up production lines in Vietnam, with a 15-30% rise in purchase prices and larger order quantities.
Furthermore, the company consents to extend production time and is prepared to assist in building production facilities and transporting materials from China to Vietnam.
source: bloomberg.com
