In response to recent changes in U.S. trade policy, Chinese online retailer Temu has revised its business strategy significantly. The de minimis rule, which previously allowed imports valued at $800 or less to enter the U.S. without tariffs, has been abolished under an executive order from President Donald Trump. This policy alteration has led to an increase in tariffs on Chinese goods by over 100%, impacting companies across the spectrum, including both Chinese firms such as Shein and major American retailers like Amazon.
Impact on Temu’s Operations
According to CNBC, this regulatory shift has resulted in U.S. consumers facing “import charges” that range from 130% to 150% on their orders. In light of these developments, Temu has ceased direct shipments from China to the United States. Now, the platform showcases only products available in domestic warehouses, while items sourced from China are marked as out of stock.
Strategic Adjustments
To adapt to the new market conditions, Temu has begun actively recruiting American sellers to join its platform. A spokesperson from Temu stated that this initiative aims to assist local merchants in expanding their customer base and enhancing their business operations.