Background on U.S. Tariffs

In a significant policy shift, former President Donald Trump eliminated the de minimis rule, which enabled goods valued at $800 or less to enter the United States without tariff fees. This change, combined with an increase in tariffs on Chinese products exceeding 100%, has compelled many companies, including major U.S. retailers like Amazon and Chinese manufacturers such as Shein, to rethink their strategies to address rising costs.

Impact on Temu

According to reports from CNBC, Temu has felt the ramifications of these tariff changes. U.S. consumers are now facing additional import charges ranging from 130% to 150% on their purchases. In response, Temu has ceased direct shipments from China and is pivoting its business model.

New Business Strategies

Temu has now shifted its focus to showcasing products that are stored in U.S. warehouses, ensuring that items are readily available without incurring excessive import duties. Goods sourced directly from China are currently displayed as out of stock, streamlining the purchasing process for American shoppers.

A spokesperson for Temu commented on these changes, stating, “Temu has been actively recruiting U.S. sellers to join the platform. The move is designed to help local merchants reach more customers and grow their businesses.” This strategy aims to foster a community of local sellers while navigating the challenges imposed by tariffs.