The World’s Waste Is Coming—Will Australia Let It In?
Trade policy has not always benefited conservation. Yet the United States' decision to end the de minimis exemption—a tax break for imported goods under $US800—may be one of those rare moments.
While the policy shift, in part, was initiated by the Biden administration to address the explosion of illicit goods, it also removes the ability for Chinese-origin goods to exploit the tax exemption. In doing so, it disrupts the model that enables platforms like SHEIN and Temu to flood markets with ultra-fast fashion and disposable goods.
A 2023 report¹ found that over 30% of the 4 million daily de minimis shipments into the US came from SHEIN and Temu. These companies rely on speed, scale and low-cost manufacturing to ship incredible volumes of low-cost clothing into Western markets—fuelling a culture of disposability. Clothes are discarded fast and often made under poor labor conditions using resource-intensive materials. It’s a system optimised for price over quality—and by extension, sustainability.
Some voices in the sustainability movement have welcomed the change. ThredUp, a leading resale platform, called the plans a “critical step” in addressing the flow of ultra-fast fashion into the US². Their argument is simple: when fast fashion becomes less cheap, quality and longevity become more attractive.
Unfortunately, price hikes alone won’t drive global reform. Fast fashion brands are agile. Many will pivot—investing in local warehousing or shifting their focus to less regulated markets like Australia. Reports already suggest an increase in aggressive pricing and marketing tactics aimed at Australian consumers, potentially deepening the strain on local brands and community sustainability efforts.
Australia is the second-largest consumer of clothing per capita in the world. The industry manufactures and imports over 1.4 billion units of new clothing annually—more than half of which will end up in landfill³. US trade policy may be placing Australia at risk of becoming the new pressure valve for the global fast fashion system.
In late-2022, the Australian Government laid out its plan to transition to a circular economy by 2030. But the global pace of change, and the pressure it brings, is moving faster than our policy timeline. If we don’t accelerate action, we risk becoming the dumping ground for global overproduction.
As the US tightens its borders against unsustainable imports, Australia must do more than watch from the sidelines. We need to bring forward practical action; tighten import standards, strengthen extended producer responsibility, and support the businesses already building circular solutions locally.
The question isn’t whether we have a plan. It’s whether we’re prepared to act before the world’s waste becomes our problem.
1. House Select Committee on the Chinese Communist Party, 2023. De Minimis Loophole: Shein, Temu, and China’s Undermining of U.S. Trade Enforcement. [online] United States House of Representatives. Available at: https://selectcommitteeontheccp.house.gov/sites/evo-subsites/selectcommitteeontheccp.house.gov/files/evo-media-document/de-minimis-report-final.pdf [Accessed 20 May 2025].
2. ThredUp, 2024. ThredUp Responds to Biden Administration’s Plans to Close De Minimis Loophole for Ultra-Fast Fashion. [online] ThredUp Newsroom. Available at: https://www.thredup.com/bg/p/press-release-biden-administration-de-minimis [Accessed 20 May 2025].
3. Global Fashion Agenda, 2024. Roadmap to Clothing Circularity. [online] Global Fashion Agenda. Available at: https://assets-global.website-files.com/6626f3b6b75e22631bdf7c57/6635b9a6b151554d558d9cd5_Roadmap-to-Clothing-Circularity%20(1).pdf [Accessed 20 May 2025].