Latest news with #StephenCoulombe
Axios
30-07-2025
- Business
- Axios
What to know about the "de minimis" exemption that Trump is now ending
President Trump revoked on Wednesday an exemption on tariffs for global packages worth less than $800. Why it matters: The "de minimis" loophole has been an important protection for businesses overseas and U.S. customers, and getting rid of it will make low-price goods from around the world more expensive for Americans. The suspension has been in place for China since April, and has had a serious impact on major Chinese retailers like Shein and Temu. What's next: After months of an on-and-off trade policy, Trump is moving ahead with his Friday deadline to raise, or put into effect, tariffs on both key goods and major allies. Here's what to know: When the suspension goes into effect State of play: The de minimis exemption will end on Aug. 29, the White House said. What the de minimis exemption is Packages valued under $800 have enjoyed an exemption from added duties, which has previously enabled foreign online retailers like Temu and Shein to sell super-cheap items to American consumers. By the numbers: The number of de minimis entries has grown to more than 1 billion in 2023 from 153 million in 2015, according to Congress. Context: Congress initially enacted the exemption in 1930 "to improve administrative efficiency and to avoid expense and inconvenience to the government," according to Congress' website. How the exemption will impact international products Zoom in: International shipments will taxed one of two ways: An "ad valorem" duty equal to the tariff rate set by the International Emergency Economic Powers Act (IEEPA), or A "specific duty" with a temporary tax between $80 and $200 per item. After six months, however, "all applicable shipments must comply with the ad valorem duty methodology, " according to the White House statement. American travelers can still "bring back up to $200 in personal items and individuals can continue to receive bona fide gifts valued at $100 or less duty-free," however. How the suspension will impact U.S. businesses, consumers De minimis critics say the loophole has hurt U.S. businesses, such as fashion retailer Forever 21, which began liquidating its U.S. stores after blaming the rise of Shein and Temu in part for its downfall. "The ability for non-U.S. retailers to sell their products at drastically lower prices to U.S. consumers has significantly impacted the Company's ability to retain its traditional core customer base," Forever 21 co-chief restructuring officer Stephen Coulombe said in a court filing. The other side: Free-market think tank Cato Institute has argued that eliminating the exemption means "effectively raising taxes on American consumers and dramatically increasing shipping times." How the suspension has affected Chinese products Americans' use of Temu and Shein have slowed significantly since Trump closed the loophole for China, according to data shared with CNBC by market intelligence firm Sensor Tower.
Yahoo
16-04-2025
- Business
- Yahoo
Forever 21 creditors probe IP sale to Authentic Brands Group
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. A committee of unsecured Forever 21 creditors has objected to a bankruptcy plan by its debtors and is investigating what it describes as a transfer of the fast-fashion brand's intellectual property assets, according to documents filed last week with the U.S. Bankruptcy Court for the District of Delaware. 'The prospects of a going concern sale are grim given that the Debtors appear to have sold their valuable Forever 21 intellectual property assets to a subsidiary of Authentic Brands Group, an affiliate of the Debtors' majority equity holders, prior to the Petition Date,' the committee wrote in the filing. The committee is alluding to a statement by Stephen Coulombe, co-chief restructuring officer of F21 OpCo, the entity that filed under Chapter 11 on March 16 and is essentially Forever 21's U.S. operating company. Coulombe doesn't provide details about any transaction that may have shifted ownership, but goes on to say that, without the 'valuable intellectual property,' the retailer is unlikely to be able to continue 'as a going concern.' An Authentic spokesperson confirmed that, at some point after early 2020, Authentic took 100% ownership of Forever 21's IP, after sharing it for a time with mall REITs Simon Property Group and Brookfield. The current bankruptcy process doesn't affect the fact that the IP will continue to be solely owned by Authentic, the spokesperson also said. A consortium of the three companies, dubbed Sparc Group, acquired Forever 21 during its last bankruptcy in 2020. That included all of Forever 21's trademarks, intellectual property and intellectual property licenses, according to court documents from February that year. Later in 2020, Sparc became a 50/50 joint venture between Simon Property Group and Authentic tasked with the operations of various brands; Sparc had no stakes in their IP. In 2021, Brookfield said it had sold off its interest in Forever 21. Sparc Group has shifted both its ownership and its portfolio more than once before getting folded into Catalyst Brands, a combination with J.C. Penney, earlier this year. Authentic is also an investor in Catalyst. Over the past few years, Sparc collected a series of brands via their respective bankruptcies. They include Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica, and are now under Catalyst's umbrella. Catalyst has had a rough year so far, laying off 5% of its corporate staff in February and another 9% this month. When Catalyst announced its formation in January, it said it was exploring strategic options for Forever 21. Sign in to access your portfolio
Axios
10-04-2025
- Business
- Axios
Temu and Shein packages face another Trump tariff hike
Packages from the likes of low-cost Chinese retailers Temu and Shein are facing another tariff hike from President Trump. Why it matters: Imported shipments valued at less than $800 had enjoyed the "de minimis" exemption from added duties, which enabled foreign online retailers like Temu and Shein to sell super-cheap items to American consumers without facing tariffs. Trump recently moved to close that loophole, and now he's making it even harder for those packages to be sold to American consumers. Between the lines: The White House on Thursday announced that shipments valued at $800 and sent through the international postal network from China to the U.S. will now face a 120% tariff (or $100 per item from May 2 to June 1, and then $200 per item beginning June 1). That's up from Tuesday, when he raised it to 90% (or $75 per item on May 2 and $150 per item on June 1). The move is "to ensure that the imposition of tariffs ... is not circumvented," according to an executive order signed by Trump. The impact: Higher duties on low-cost goods could make the shipments cost-prohibitive for American consumers, or could force Chinese retailers to source their goods from other countries. Inside the room: The Trump administration has said it's imposing increased tariffs on China due to China's retaliatory tariffs on the U.S. Threat level: Critics of the de minimis exemption say it has bludgeoned U.S. businesses, such as fashion retailer Forever 21, which recently began liquidating its U.S. stores after partly blaming the rise of Shein and Temu for its downfall. "The ability for non-U.S. retailers to sell their products at drastically lower prices to U.S. consumers has significantly impacted the Company's ability to retain its traditional core customer base," Forever 21 co-chief restructuring officer Stephen Coulombe said in a court filing.
Axios
09-04-2025
- Business
- Axios
Trump triples tariff that affects packages from Shein, Temu
The Trump administration, which already closed a trade loophole that allowed cheap goods from China to avoid tariffs, is now tripling the planned levy. Why it matters: Packages valued at less than $800 have enjoyed the "de minimis" exemption from added duties, which has enabled foreign online retailers like Temu and Shein to sell super-cheap items to American consumers. Follow the money: Trump las week signed an executive order ending the loophole on shipments from China beginning May 2. The president had briefly suspended the duty loophole in the early days of his second term, before restoring the exemption while the Commerce Department put together a plan to "fully and expediently process and collect tariff revenue." The Commerce Department has since declared that "adequate systems are in place to collect tariff revenue" on low-value international shipments. Zoom in: Applicable duties will be attached to shipments under $800 that are sent from China to the U.S. outside of the international postal system, according to the White House. Shipments under $800 that are sent through the international postal network were originally to be "subject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025)." But the White House tripled those levies on Tuesday — 90% of their value, or $75 (rising to $150 after June 1), citing the retaliatory tariffs imposed by China's government. Threat level: Critics of the de minimis exemption say it has bludgeoned U.S. businesses, such as fashion retailer Forever 21, which recently began liquidating its U.S. stores after partly blaming the rise of Shein and Temu for its downfall. "The ability for non-U.S. retailers to sell their products at drastically lower prices to U.S. consumers has significantly impacted the Company's ability to retain its traditional core customer base," Forever 21 co-chief restructuring officer Stephen Coulombe said in a court filing. The other side: Free market think tank Cato Institute argued that eliminating the de minimis exemption means "effectively raising taxes on American consumers and dramatically increasing shipping times."
Axios
02-04-2025
- Business
- Axios
Trump ends China tariff loophole used by Shein and Temu
The Trump administration is moving forward with a plan to close a trade loophole that previously allowed cheap goods from China to avoid tariffs. Why it matters: Packages valued at less than $800 have enjoyed the " de minimis" exemption from added duties, which has enabled foreign online retailers like Temu and Shein to sell super cheap items to American consumers. Follow the money: Trump on Wednesday signed an executive order ending the loophole on shipments from China beginning May 2. The president had briefly suspended the duty loophole in the early days of his second term before restoring the exemption while the Commerce Department put together a plan to "fully and expediently process and collect tariff revenue." The Commerce Department has since declared that "adequate systems are in place to collect tariff revenue" on low-value international shipments, the White House said Wednesday. Zoom in: Applicable duties will be attached to shipments under $800 that are sent from China to the U.S. outside of the international postal system, according to the White House. Shipments under $800 that are sent through the international postal network will be "subject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025)." Threat level: Critics of the de minimis exemption say it has bludgeoned American businesses, such as fashion retailer Forever 21, which recently began liquidating its U.S. stores after partly blaming the rise of Shein and Temu for its downfall. "The ability for non-U.S. retailers to sell their products at drastically lower prices to U.S. consumers has significantly impacted the Company's ability to retain its traditional core customer base," Forever 21 co-chief restructuring officer Stephen Coulombe said in a court filing. The other side: Free market think tank Cato Institute argued that eliminating the de minimis exemption means "effectively raising taxes on American consumers and dramatically increasing shipping times."
