Trump administration weighs adding Shein, Temu to forced labor list
Listing the two companies, which are popular in the US, would be a significant move by the administration and signal its interest in cracking down on consumer products imported from China. Both sources noted that the administration has made no final decision on the matter and could ultimately decide not to list either.
DHS, as well as a representative for Temu, didn't immediately return requests for comment.
A Shein spokesperson said in a statement: 'We are not aware of any such consideration. Furthermore, a complete and fair review of the facts would demonstrate we are in full compliance with the UFLPA. We have made it our priority to implement best in class standards, including our voluntary participation in the CBP Section 321 Data Pilot program. We have confidence in our products and the integrity of our supply chain.'
The forced labor list, established by Congress through the 2021 Uyghur Forced Labor Prevention Act, singles out companies that rely on forced labor to mine, produce, or manufacture goods in China's Xinjiang region.
Trump has already taken action that affects the two giant Chinese fashion firms, shutting down a loophole this week called the 'de minimis' exemption that allowed companies shipping packages valued under $800 into the US to avoid taxes and extra scrutiny. The halt is part of Trump's 10% additional tariffs on China.
'It would be a pretty bold move,' to add the fast-fashion companies to the list, said Greta Peisch, a former general counsel for the US trade representative under the Biden administration. She added that, alongside the ending of the shipping exemption, it would show the Trump administration is 'really targeting consumer goods.'
A bipartisan investigation by the House select committee on China in 2023 concluded that Temu was probably shipping goods made with forced labor into the US on a 'regular basis,' while also faulting Shein's use of the de minimis exception.
Shein, which was founded in China but now has headquarters in Singapore, has said in the past that it does not tolerate forced labor.
Shein is facing an investigation in the European Union over its compliance with consumer laws, Bloomberg reported.
The prices of goods shipped by Shein, Temu, and Amazon Haul into the US are projected to rise given Trump's move to close the de minimis loophole, Reuters reported.
Shein called for a 'complete makeover' of the de minimis provision back in 2023, Semafor reported at the time.
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