On Super Bowl Sunday, Temu, an e-commerce giant, promoted their low prices through various ad spots during the game, encouraging customers to “shop like a billionaire.” However, Halsey Cook, CEO of Milliken & Company, a textile manufacturer, was concerned about the impact of these low prices on his business. Over the past few years, similar products to Milliken’s apparel lines have appeared on Temu and Shein for significantly lower prices, leading to financial struggles for Milliken. The company was forced to close two plants and lay off hundreds of workers due to the competition.
Temu and Shein are rapidly growing companies in the U.S., sending nearly a million packages a day to American consumers and generating billions of dollars in revenue annually. These companies ship products directly from Chinese warehouses at low costs, allowing American consumers to purchase items like fast fashion and electronics at very affordable prices. Small American businesses are concerned that these e-commerce giants are threatening their survival, leading to potential closures and the relocation of warehouses overseas if the trend continues.
In response to the threat posed by companies like Temu and Shein, some Congresspeople have proposed legislation to address a trade rule that benefits these companies. The de minimis rule allows them to ship packages without paying duty and certain taxes as long as the shipments are under $800 in value. Closing this loophole could help level the playing field for American businesses by preventing e-commerce companies from undercutting them with cheap imports. The impact of these legislative efforts could have significant implications for the future of the domestic textile industry and small businesses in the U.S.
