• The term ultra fast fashion refers to companies like Shein and Temu, which base their production model on the continuous release of products sold at rock-bottom prices.
• One of the mechanisms that has allowed these businesses to proliferate is a loophole in the US market known as the "de minimis exemption", which allows low-value goods to enter the country without being subject to customs duties.
• The tariffs threatened by the administration led by Donald Trump could throw the ultra fast fashion giants into crisis, forcing them to revise their pricing policies.

In recent years, platforms like Shein and Temu have become household names for millions of consumers, especially among young people. Flash deals, ten-dollar jeans, tops for under five, and the ability to refresh an entire wardrobe for less than 50 dollars: all of this has been made possible by a logistical and fiscal system that is extremely advantageous for Chinese companies. But the regulatory change in the United States promised and promoted by the administration led by President Donald Trump now risks upending the balance on which this market rests. The key mechanism that has allowed Shein and Temu to thrive in the US market is a loophole known as the de minimis exemption. Under this rule, goods imported into the United States with a value below 800 dollars can enter the country without being subject to tariffs or thorough customs checks. Chinese companies have taken massive advantage of this: by shipping each individual item as a separate parcel, they have managed to avoid taxes and keep prices extremely low. Every day, millions of packages leave Chinese warehouses directly to reach American consumers, bypassing the conventional commercial system and sidestepping local retailers.

Trump, tariffs and ultra fast fashion

Now Donald Trump, eager to strengthen domestic production, has decided to put an end to this preferential channel. While toning down the trade-war rhetoric that had characterised his first term, Trump has announced new rules that drastically limit the use of the de minimis exemption for products coming from China. The immediate result will be an increase in costs for fast fashion companies and, consequently, for consumers. Without the ability to avoid customs duties, product prices will inevitably rise. Furthermore, the introduction of customs checks will lead to longer delivery times, reducing the effectiveness of the just-in-time model that made Shein a global giant.

According to Meaghan Tobin, a New York Times correspondent specialising in technology and business in Asia, the measure represents a crucial moment for the fast fashion sector. "It's possible we are witnessing the beginning of the end of an era — that of cheap, disposable fashion available at the click of a button," she explains. Many companies could be forced to relocate part of their production or rethink their logistics to remain competitive. Some are already considering opening distribution hubs in Mexico or other countries close to the United States, in order to avoid American customs while remaining within the North American trade agreement."

Good news for the environment?

Paradoxically, this regulatory tightening could have positive effects on the environmental front. The most devastating ecological impact of fast fashion and ultra fast fashion lies in the problem of overproduction: mountains of discarded clothing, intensive manufacturing, massive use of resources, and emissions linked to international shipping. If prices were to rise, consumers might return to a more conscious and sustainable approach, buying less but better. The slowdown in compulsive consumption could also push companies to invest in more responsible production models and to improve the quality of the products they offer.

And in Europe? Brussels proposes a 2-euro fee

The issue also closely concerns Europe. Although EU customs rules differ from those of the United States, the enormous success of Shein and Temu in the European market has attracted the attention of institutions. Brussels is considering the introduction of stricter rules on supply chain transparency and the environmental responsibility of non-European companies selling online to European consumers. Moreover, the imposition of new tariffs by the Trump administration on Chinese products has had a significant impact on the European fast fashion market as well. Following the United States' decision to introduce a flat fee of 100 dollars on every parcel from China, combined with a downward revision — albeit still significant — of the tariff on shipments up to 800 dollars (reduced from 120 per cent to 54 per cent), Europe has found itself facing a concrete risk: an influx of low-cost products originally destined for the US market. To curb this phenomenon and ensure fairer competition, Brussels has proposed the introduction of a flat fee of two euros on billions of low-value parcels — those under 150 euros — sent directly to European consumers, primarily from China. According to European Trade Commissioner Maros Sefcovic, over 90 per cent of the 4.6 billion parcels that entered the EU in 2023 came from the Asian giant, placing enormous pressure on the European customs system.

The new measure aims to cover management costs, strengthen product safety and quality controls, and generate new revenue for the EU budget. The main targets of the measure are marketplaces such as Shein and Temu, which enjoy a large user base in Europe (130 and 92 million respectively, according to estimates). These platforms, which have until now taken advantage of the de minimis exemption to avoid duties on low-value items in the US, will now have to contend with stricter regulations in the Old Continent as well. Furthermore, public opinion — increasingly sensitive to issues of sustainability and workers' rights — could play a decisive role in reshaping purchasing choices, further weakening the fast fashion model. The change underway in the United States marks a turning point in the global landscape of low-cost fashion. If the golden age of two-dollar T-shirts is coming to an end, a new phase may perhaps be opening. It remains to be seen how consumers will react and, above all, whether the fast fashion giants will manage to reinvent themselves in order to survive in an increasingly regulated and less permissive environment.