The Trump administration is weighing whether or not so as to add Temu and Shein to a compelled labor record in a significant blow to the Chinese language fast-fashion giants, quickly after President Trump imposed tariffs on China, in response to a report.
Officers are discussing whether or not so as to add Temu and Shein to the Division of Homeland Safety’s compelled labor record, two sources conversant in the discussions informed Semafor.
The Division of Homeland Safety didn’t instantly reply to a request for remark.
The label can be one other robust clampdown on the Chinese language companies, after President Trump’s 10% tariffs on China earlier this week ended a longtime commerce loophole – which is able to possible power Temu and Shein to lift their costs, and see their packages caught at customs for weeks.
Each Temu and Shein have denied the accusations of widespread compelled labor, even after Shein final yr revealed it discovered two situations of kid labor inside its provide chain.
“Temu strictly prohibits the use of forced labor and enforces our Third-Party Code of Conduct, which bars all forms of involuntary labor,” a spokesperson for Temu, which is owned by PDD Holdings, mentioned in a press release.
“Sellers and business partners must ensure their own — and their suppliers’ — full compliance with this code and relevant laws,” the spokesperson mentioned.
Temu added that its cotton-based merchandise solely account for about 1% of its gross sales, and that it doesn’t “facilitate the importation of cotton-based products into the United States.”
The spokesperson mentioned greater than 50% of its US gross merchandise worth comes from native sellers and warehouses.
Shein informed Semafor it isn’t conscious of any consideration to be positioned on the compelled labor record.
“A complete and fair review of the facts would demonstrate we are in full compliance with the UFLPA,” a Shein spokesperson informed The Publish in a press release. “We have made it our priority to implement best in class standards.”
In 2023, a bipartisan investigation by the Home choose committee discovered that Temu was possible delivery items made with compelled labor into the US on a “regular basis.”
The report additionally condemned Shein’s abuse of the de minimis exemption, which allowed sellers to keep away from paying taxes on packages value lower than $800 – the commerce loophole that Trump ended on Tuesday via his tariffs on China.
US representatives early final yr reportedly began pressuring the Biden administration to ban Temu imports and add the e-commerce web site to the compelled labor record, which Congress established in 2021, in response to The Data.
In the meantime, Shein is going through elevated scrutiny within the European Union over its product security requirements.
Throughout a press convention on Wednesday, lawmakers warned that Shein has been flooding the EU with low-cost imports presenting critical well being and security dangers to shoppers.
