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U.S planned crackdown on cheap Chinese goods is a blow to Meta’s Chinese advertisers such as Temu and Shein
- The U.S government is planning to impose a tax on packages worth less than $800 shipped from China.
- Initially, this packages were shipped directly to consumers, hence not attracting any tax.
- The clampdown will be a blow to Meta’s Chinese advertisers such as Temu and Shein.
- Jefferies estimate that Temu’s U.S gross merchandise volume in the first half of 2024 was around $8 billion.
- Temu and Shein said their growth wasn’t contingent on free tax policy and that they will focus on business efficiency and making customers happy.
- There currently no insights on how much tax will be imposed but packages between $800 and $1800 attract a flat 4% import duty.