Temu’s packaging can be seen in front of the screen with the Temu logo. (Nicos Beijing Beijing/Photo of Cats by Getty Image)
Nourishing | Nourishing | Getty Image
Chinese online retailer Temu has been surfaced on its apps, which can be shipped from warehouses in the U.S. President Donald Trump Decided to revoke popular tax loopholes.
Many e-commerce companies use nearly a century-old exception, called De Minimis, to send goods worth less than $800 to the U.S. tax-free. trump card Saturday As part of the new tariff, there will be exemptions from the suspension, which includes a 10% tax on Chinese goods.
De Minimis helped drive Temu and Shein’s explosive growth in the U.S. by allowing companies to bypass taxes on low-value goods and collect taxes in the U.S. and maintaining its rock prices in terms of ranging from shoes and clothing to furniture and electronics.
As tax exemptions disappeared, Temu greatly improved the promotion of sellers in stock in U.S. warehouses, rather than items shipped directly from China. A list scan in Temu’s “Lightning Deal” section shows that it is almost entirely dominated by products with green “local” badges.
By promoting local inventory, Temu’s products not only reach shoppers’ doorsteps faster, but the company also reduces the reliance on sellers shipped directly from China. Even if the products are stored in U.S. warehouses, many local listings indicate that the items are sold by Chinese companies.
Temu’s representative did not respond to a request for comment.
Temu is surfaced in a local warehouse in its app due to the popular trade loophole suspension.
Temu promotes American products, and also makes it with Amazon,,,,, ebay and WalmartThis has also been signed in China for sellers to ship items to warehouses. Last year, Amazon noticed a sharp increase in Temu and Shein in the U.S. Launched its own budget store called Haul.
Temu, owned by Chinese online retailers PDD Holdsold and sellers in U.S. warehouses began in March. By July, about 20% of Temu’s U.S. sales came from these sellers, rather than Chinese-based merchants, according to e-commerce market research firm. Market pulse.
Temu, Shein and other Chinese e-commerce companies are trying to minimize the level of their service disruptions when facing new, more stringent customs requirements. They were trapped in more chaos On Tuesday night When the U.S. Postal Service suddenly announced that it would suspend inbound packages in China and Hong Kong until further notice. ”
Less than 12 hours later, USPS Turned the decisionAnd restore packages that accept these areas. The agency also said it will work with the U.S. Customs and Border Protection to “implement an effective collection mechanism for the tariffs of New China to ensure minimal interruptions in packaging delivery.”
Uncertainty has arisen volatility Shares of PDD fell 6% on Monday, rose 8% on Tuesday and fell more than 3% on Wednesday.
Critics say this provides unfair advantages for Chinese e-commerce companies and creates a series of influx of “parcels with minimal documentation and inspections” that has sparked a slew of fake and insecure goods. Worry.
Others advocate for the minimum immunity, saying their removal would bear the burden of customs officials, and Causes higher government costs.
“At some point, there are 3 million of the merchandise that are stacked every day to do their best, but without equipment,” said Hugo Pakula, CEO of supply chain compliance firm TRU Identity. “This week they have to be more than last week,” said Hugo Pakula. 10 times more screenings.”
CBP said the company processed more than 1.3 billion De Minimis shipments in 2024. The report of 2023 House of Representatives Selected Members from the Communist Party of China
Shein has also been proposing to American buyers and sellers. The company opened distribution centers in 2022 in states, including Illinois and California, and last year it opened a supply chain center in Seattle. company explain The Seattle hub will make it “localized and support faster delivery times for U.S. consumers.”
watch: Amazon Towling Replaces Temu
