**Tariff Changes May Impact Emissions and Fast Fashion Prices**

**Fast fashion retailers like Shein and Temu have flourished in the U.S. due to a tariff exemption on packages from China, but new tariffs may change the game.**

President Trump has recently decided to close a tariff loophole that has benefited fast-fashion retailers such as Shein and Temu, potentially impacting pricing and environmental emissions significantly. Known as the de minimis exemption, this policy permits imports valued under $800 to enter the U.S. without incurring tariffs. The anticipated changes in tariff regulations could lead to decreased shipments by air, a development that may unintentionally lower carbon emissions associated with the fashion industry.

Last year, a staggering 1.36 billion packages entered the U.S. under this exemption, with China as the primary source of these imports. Customs and Border Protection data indicates that most of these packages took to the skies, with air freight being 68 times more carbon-intensive than ocean shipping, according to the Climate Action Accelerator, a non-profit organization based in Switzerland.

Countries worldwide have similar rules regarding small-value shipments. For instance, the threshold in Europe sits at 150 euros, while Argentina allows $400. This exemption has been a crucial policy aiding in streamlining customs processes for smaller packages since its last congressional update in 2016. However, the U.S. threshold has encouraged foreign e-commerce to emerge as a significant competitor to established local giants like Amazon and Walmart.

The implications of altering the de minimis exemption may extend beyond just financial considerations for fast-fashion retailers; it could lead to reduced overall shipping emissions while reshaping the competitive landscape in the e-commerce sector.