Essentially the reason why this is a loophole, is because Chinese companies like Shein and Temu have structured their entire businesses around shipping directly

Essentially the reason why this is a loophole, is because Chinese companies like Shein and Temu have structured their entire businesses around shipping directly from China and marketing directly to the United States so that a company like Amazon would need to pay tariffs on all it’s goods, because it imports into the US directly and Shein and Temu would have to pay no tariffs. It makes no sense for the United States to charge 145% tariffs to normal American companies, and then allow a loophole so that large Chinese e-commerce giants essentially benefit by structuring their business to not operate in the United States. The purpose of the tariff’s is to increase American employment not decrease it. A loophole to minimize administrative burden makes no sense when applied to companies selling tens of billions of dollars into the US every year.