Temu, a Chinese online marketplace, will cease directly selling goods from China to US customers, instead utilizing “locally based sellers” for order fulfillment within the US. This shift follows the closure of a duty-free rule for low-value packages, previously exploited by Temu and Shein to offer ultra-low prices. The decision aims to support American businesses and combat the smuggling of illegal goods, a concern raised by both the Trump and Biden administrations. This change is expected to result in price adjustments for consumers, mirroring similar actions taken or considered in the UK and European Union.
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Temu’s ultralow prices are significantly impacted by Trump-era tariffs, resulting in substantial import fees for U.S. customers; these charges, sometimes exceeding the item’s original cost, are levied even on goods shipped from within the U.S. but manufactured in China. A notice on Temu’s site informs customers of these potential charges, which vary widely. The high tariffs, described by Barclays analysts as a de facto trade embargo, are causing considerable frustration among U.S. consumers, while other Chinese retailers appear unaffected. These increased costs, attributed to changes in global trade rules, are prompting price adjustments across Temu’s platform.
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Temu and Shein, facing increased operating expenses due to new global trade rules and tariffs imposed by the Trump administration, will raise prices starting April 25th. The price hikes are a direct result of the 145% tariff on goods from China and the elimination of a duty-free exemption for goods under $800. This change significantly impacts the business models of these e-commerce giants, known for their ultra-low prices. Despite the price increases, both companies assure customers that they are working to minimize the impact and maintain service.
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Trump’s recent decision to close a loophole in China tariffs is sending ripples through the fast-fashion world, significantly impacting online retailers like Temu and Shein. The new tariff applies to international postal shipments valued under $800, imposing either a 30% levy on the item’s value or a minimum charge, whichever is higher. This means that smaller packages face a substantially increased cost.
Initially, the minimum tariff was set at $25, affecting packages up to roughly $83 in value. However, starting June 1st, 2025, this minimum charge doubles to $50, impacting packages valued up to approximately $167. For shipments exceeding these thresholds, the 30% tariff remains in effect.… Continue reading
The recent news about President Biden targeting Shein and Temu with new rules to curb the alleged abuse of a U.S. trade loophole has sparked a lot of discussion online. As someone who frequently shops online, I can understand the frustrations that many consumers have expressed about the prevalence of cheaply made products flooding the market from overseas retailers. It’s no secret that companies like Shein and Temu, among others, have been taking advantage of the de minimus provision to avoid tariffs and duties while selling subpar products to unsuspecting customers.
It’s disheartening to see that a significant percentage of packages shipped to the U.S.… Continue reading
John Q. Hosedrinker 
Matt Underwood