Biden and Harris criticize Shein for a loophole that allows it to evade tariffs on small packages

Shein could be hit by a crackdown in the United States over a trade loophole.

President Joe Biden and Vice President Kamala Harris have proposed changing rules that mean the online fashion giant can avoid tariffs on packages worth $800 or less.

Chinese retailers including Shein and Temu have gained explosive popularity in recent years due to their ultra-cheap products.

Part of their success is due to the fact that they can ship products directly to buyers.

But retail rivals and policymakers, including in Europe and the UK, have criticised the related tax loopholes.

Navtej Dhillon, deputy director of Biden’s National Economic Council, said there has been a “dramatic increase” in exempt shipments.

The number of such imports has risen from about 140 million to more than 1 billion over the past decade, the White House said.

They have made it “increasingly difficult to track and block illegal or unsafe shipments arriving in the United States,” Dhillon added.

In Europe, the European Commission is reportedly preparing to impose customs duties on packages sent from outside the EU.

Currently, goods with a value of less than €150 can be imported into the European Union from outside it without paying any tariffs.