Chinese e-commerce platform Temu has removed all products shipped directly from China from its US site, following the end of a key trade exemption. The move coincides with new tariffs introduced by the Trump administration, which have effectively closed the "de minimis" loophole that allowed duty-free imports under $800.
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Previously, this exemption enabled Temu to offer ultra-low prices by shipping items directly from Chinese sellers. With the loophole removed, the platform has begun displaying only products stored in local US warehouses. This shift has caused widespread confusion and frustration among American users who found their saved items suddenly unavailable, and among Chinese sellers who were not warned in advance.
The change forces Temu to adopt a business model more akin to Amazon, increasing its warehousing operations in the United States. It is also experimenting with alternative logistics models, placing greater responsibility on sellers for customs clearance and delivery. However, such changes could undermine Temu's competitive pricing advantage.
According to reports, Temu is now turning its focus towards other global markets, including Europe, where similar trade restrictions are not currently in place.
The removal of the de minimis exemption is part of a broader protectionist shift in US trade policy, aimed at countering the rise of Chinese e-commerce platforms. Temu's sudden adjustments reflect the growing challenges for foreign firms navigating tightened regulations and shifting political landscapes.
Source: www.ehandel.se