Tariffs give Primark a leg up

End of 'de minimis' hits Shein and Temu

- JAMES DAVEY HELEN REID

Primark is accelerating its US store openings and ramping up marketing, betting that President Donald Trump's move to scrap a duty exemption on e-commerce parcels will drive budget-conscious shoppers away from online rivals and back to stores.

The US administration in May ended "de minimis" duty-free treatment of goods under $800 (about 26,000 baht) ordered online from China, hurting online fast-fashion platforms like Shein and Temu that ship directly from Chinese factories to shoppers' doorsteps.

The move forced Shein and Temu to raise US prices and tilted the playing field in favour of retailers like Primark that sell in stores and import in bulk to US warehouses.

While Primark's own prices have also risen due to Trump's broader tariff hikes, it is now more competitive versus online rivals that face duties on their products for the first time.

Primark, the flagship of the London-listed Associated British Foods conglomerate, sells trendy, low-priced clothing through 475 stores in 18 countries, generating nearly £10 billion ($13.4 billion) in annual sales and more than £1 billion in profit-all without offering home delivery.

Primark says shipping to homes does not make financial sense given its low prices and the high fulfilment costs, though shoppers can view its ranges online and Click & Collect is available in Britain.