Temu Adjusts U.S. Operations as De Minimis Exemption Ends
Temu shifts to U.S. warehouses following the expiration of the de minimis loophole, raising consumer prices on previously low-cost imports from China.
The end of de minimis, as well as Trump’s new 145% tariffs on China, has forced Temu to raise prices, suspend its aggressive online advertising push and now alter the selection of goods available to American shoppers to circumvent higher levies.
Temu halts shipping direct from China as de minimis tariff loophole is cut off
NBC News·5h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
The change is a major shift for the platform.
Temu says it’s only shipping within the US. That doesn’t mean the products are made here | Business
CNN·6h·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.Leans LeftThis outlet slightly leans left.
Trump’s blanket 145 percent tariffs on Chinese imports are having wide impacts on almost every industry, whereas the change to de minimis specifically hurts platforms like Temu and Shein.
Small Packages From China Are Now Subject to US Tariffs. Here’s What to Know
Wired·6h·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans LeftThis outlet slightly leans left.
The rollback of the de minimis exemption for tariffed goods is poised to hit consumers' wallets.
A de minimis tariff loophole expires Friday. Here's what that means for shoppers.
CBS News·1d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
More than half of the packages brought into the U.S. under the exemption come from China, which is currently saddled with 145% tariffs, reports Mary Walrath-Holdridge.
The Daily Money: Heard of de minimis? Why care?
USA TODAY·1d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
As of Friday, parcels worth less than $800 will be subject to a 120% levy or a flat fee of $100, rising to $200 from June.
Why is Trump ending the ‘de minimis’ tariff loophole on low-value imports?
The Guardian·1d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.Leans LeftThis outlet slightly leans left.
Summary
As of May 2, 2023, Temu has updated its U.S. business model by exclusively showcasing products shipped from local warehouses, following the end of the de minimis rule. The rule had enabled low-value goods from China to be imported duty-free, fostering ultra-low pricing on items like sneakers and kitchen gadgets. However, recent executive orders have imposed tariffs up to 145%, forcing Temu to suspend its aggressive advertising and raise prices slightly, although it claims that local products incur no extra charges. Shein has similarly adjusted its pricing strategy in light of these changes, indicating broader impacts on U.S. consumer costs.
Perspectives
The closure of the de minimis loophole that previously exempted packages under $800 from tariffs will lead to higher prices for consumers and fewer options in the market, as retailers like Shein and Temu begin to adjust their business models in response to new tariffs.
Temu has shifted its operations to US-based sellers in order to circumvent new tariffs on direct shipments from China, although this may still result in higher prices for consumers despite claims of unchanged pricing from Temu.
The increase in the volume of packages requiring inspections will burden U.S. Customs and Border Protection, potentially causing shipment delays and inefficiencies in the customs process.
FAQs
History
- 1d