A package from TEMU is seen in front of a screen with the TEMU logo. (Photo by Nikos Pekiaridis/Nurphoto through Getty Images)
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Chinese retail seller Temu has been surfaced with more products in his app that can be sent from depots to the US after President Donald Trump’s decision to revoke a popular tax emptiness.
The nearly centuries -old exception, known as De Minimis, has been used by many e -commerce companies to send goods worth less than $ 800 to the US without task. Trump on Saturday suspended exemption as part of new tariffs that include an additional 10% tax on Chinese goods.
De minimis has helped exploding TEMU and Shein in the US by allowing companies to bypass taxes on low value deliveries and keep their prices ultimately in everything, from shoes and clothes to furniture and electronics .
With the removal of missing tariffs, TEMU has significantly increased its promotion of sellers inventory in the US warehouses, rather than items sent directly from China. A scan of lists in TEMU “Lightning Agreements” shows that it is almost entirely dominated by products with a local “local” green symbol.
By promoting local inventory, TEMU products not only reach the doorstep more quickly, but the company also reduces its confidence in the seller they send directly from China. Although products are stored in US warehouses, many local lists say articles are sold by China -based businesses.
TEMU representatives did not respond to requests for comment.
Temu is surfaced with more products sent by local depots to his application in the wake of suspension of a popular trade gap.
Promotion of TEMU of products based on the US also puts it in a more direct competition with Amazon, ebay AND Unsaturatedwhich have also signed seller in China sending goods overseas to their warehouses. Amazon last year noted the dramatic growth of TEMU and Shein in the US when he started his own budget shop, called Haul.
Temu, who is owned by the Chinese retailer online PDD HoldingsStarted on -board sellers with inventory in US warehouses in March. By July, approximately 20% of TEMU sales came from those sellers, not from China-based traders, according to the E-Commerce Marketplace Pulse Market Research Firm.
Temu, Shein and other Chinese e -commerce companies are trying to minimize the level of breakdown of their services while facing new, stricter customs requirements. They were thrown into further chaos on Tuesday evening when the US Postal Service suddenly announced that it was suspending entry packages from China and Hong Kong “until further announcement”.
Less than 12 hours later, the USPS returned its decision and resumed to accept packages from those regions. The agency also said it will operate with customs and border protection in the US to “implement an efficient collection mechanism for China’s new tariffs to ensure less termination of package distribution”.
Uncertainty has created instability for the price of PDD shares, which fell 6% on Monday, increased 8% on Tuesday and fell more than 3% on Wednesday.
Critics of the Devision De Mimis say it is offered unjust advantage of Chinese e -commerce companies, and created an influx of packages that are “subject to minimal documentation and inspection”, raising concerns about forged and unsafe goods.
Others have protected that the dervation de minimis remains in the country, saying that his removal would charge customs officials and lead to higher government costs.
“At one point there will be 3 million of these goods that accumulate one day and the customs can do their best, but they are not equipped,” said Hugo Pakula, CEO of the Chain Compliance Compliance Company. “They have to do 10x more shows this week than last week.”
CBP has said it processed more than 1.3 billion shipments at minimis in 2024. A 2023 report by the Chinese Communist Party’s Chamber Selection Committee revealed that TEMU and Shein are “very responsible” for more than 30% of DE DELIVERY DE MINISTERS TO SH.BA
Shein has also been looking for US buyers and sellers. The company opened distribution centers in the countries including Illinois and California in 2022, and a SEATTLE supply center last year. The company said the Seattle Center would enable it to “localize and support the fastest distribution time for US consumers”.
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