Temu ‘actively Recruiting’ Us Sellers As It Officially Stops Shipping Stateside

Temu, nan e-commerce level known for doling retired bargain-busting deals, officially stopped fulfilling American consumers’ orders from its warehouses successful China. Instead, nan institution said it will trust connected warehouses and sellers based successful nan U.S. pursuing nan Trump administration’s determination to scrap nan de minimis taxation loophole.

The taxation exemption, which expired astatine 12:01 a.m. EST Friday, May 2, antecedently enabled countries for illustration China to import packages priced nether $800 duty-free.

Temu ‘actively recruiting’ U.S. businesses

Whereas U.S. customers utilized to person entree to a dizzying array of equipment astatine dirt-cheap prices connected Temu, Stateside shoppers are now relegated to inventory housed domestically. Temu called nan caller logistical setup “compliant and efficient,” adding that it’s centered astir a increasing web of U.S. sellers.

“Temu has been actively recruiting U.S. sellers to subordinate nan platform,” a institution spokesperson told CNBC. “The move is designed to thief section merchants scope much customers and turn their businesses.”

On Monday, April 28, Temu –– arsenic good arsenic China’s likewise positioned fast-fashion retailer, Shein –– reported that prices would beryllium rising for U.S. customers arsenic nan companies contend pinch tariffs arsenic precocious arsenic 145% levied against China, arsenic good arsenic nan de minimis exemption’s end. Shein, successful particular, saw value tags connected immoderate of its items jump by much than 300%.

Now, however, Temu said its pricing for U.S. shoppers “remains unchanged” arsenic orders coming from wrong nan state will not beryllium subjected to import charges. At betwixt 130% and 150%, immoderate of those charges risked doubling nan value of immoderate fixed item.

According to CNBC, Temu’s genitor company, PDD Holdings, has been gradually strengthening its U.S. inventory since past twelvemonth “in anticipation of escalating waste and acquisition tensions and nan removal of de minimis.”

De minimis loophole closed

While President Donald Trump initially suspended tariffs connected packages nether $800 early successful his presidency, he later reversed people and signed an executive bid targeting nan de minimis loophole. He besides raised tariffs connected de minimis packages from 30% to 90% aft China issued retaliatory tariffs against nan U.S.

The Trump management argued that nan de minimis exemption not only allowed Chinese competitors to flood nan U.S. marketplace pinch inexpensive goods, but it besides enabled nan precursor chemicals that spell into fentanyl to scope nan U.S. undetected, arsenic customs agents are little apt to inspect packages that autumn beneath nan $800 import taxation threshold.

However, nan Cato Institute, a nationalist argumentation investigation organization, warned eliminating nan de minimis exemption could negatively impact Americans and peculiarly low-income consumers. The statement besides stated that nan argumentation alteration could require nan restructuring of proviso chains, reduced title and constricted user choices.

U.S. officials said astir 4 cardinal shipments successful 2024 relied connected nan de minimis exemption, accounting for 90% of packages.