Temu halts shipping direct from China as de minimis tariff loophole is cut off
Category: News & Politics
Via: perrie-halpern • 14 hours ago • 9 commentsBy: President Donald Trump (NBC News)
S E E D E D C O N T E N T
/ Source: CNBCBy Annie Palmer, CNBC
Chinese bargain retailer Temu changed its business model in the U.S. as the Trump administration's new rules on low-value shipments took effect Friday.
In recent days, Temu has abruptly shifted its website and app to only display listings for products shipped from U.S.-based warehouses. Items shipped directly from China, which previously blanketed the site, are now labeled as out of stock.
Temu made a name for itself in the U.S. as a destination for ultra-discounted items shipped direct from China, such as $5 sneakers and $1.50 garlic presses. It's been able to keep prices low because of the so-called de minimis rule, which has allowed items worth $800 or less to enter the country duty-free since 2016.
The loophole expired Friday at 12:01 a.m. EDT as a result of an executive order signed by President Donald Trump in April. Trump briefly suspended the de minimis rule in February before reinstating the provision days later as customs officials struggled to process and collect tariffs on a mountain of low-value packages.
The end of de minimis, as well as Trump's new 145% tariffs on China, has forced Temu to raise prices, suspend its aggressive online advertising push and now alter the selection of goods available to American shoppers to circumvent higher levies.
A Temu spokesperson confirmed to CNBC that all sales in the U.S. are now handled by local sellers and said they are fulfilled "from within the country." Temu said pricing for U.S. shoppers "remains unchanged."
"Temu has been actively recruiting U.S. sellers to join the platform," the spokesperson said. "The move is designed to help local merchants reach more customers and grow their businesses."
Before the change, shoppers who attempted to purchase Temu products shipped from China were confronted with "import charges" of between 130% and 150%. The fees often cost more than the individual item and more than doubled the price of many orders.
Temu advertises that local products have "no import charges" and "no extra charges upon delivery."
The company, which is owned by Chinese e-commerce giant PDD Holdings, has gradually built up its inventory in the U.S. over the past year in anticipation of escalating trade tensions and the removal of de minimis.
Shein, which has also benefited from the loophole, moved to raise prices last week. The fast-fashion retailer added a banner at checkout that says, "Tariffs are included in the price you pay. You'll never have to pay extra at delivery."
Many third-party sellers on Amazon rely on Chinese manufacturers to source or assemble their products. The company's Temu competitor, called Amazon Haul, has relied on de minimis to ship products priced at $20 or less directly from China to the U.S.
Amazon said Tuesday following a dustup with the White House that had it considered showing tariff-related costs on Haul products ahead of the de minimis cutoff but that it has since scrapped those plans.
Prior to Trump's second term in office, the Biden administration had also looked to curtail the provision. Critics of the de minimis provision argue that it harms American businesses and that it facilitates shipments of fentanyl and other illicit substances because, they say, the packages are less likely to be inspected by customs agents.
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I have had my eye on a product i have been debating on whether or not to get so i went and checked .
still available , and the price difference from last i checked was only $50.
An increase of ONLY $50? I'll assume you're not among the paycheck to paycheck people.
was $290 went up to $340 but as the article stated , its likely already here in a warehouse and last i checked was 2 months ago .
nope not a paycheck to pay check person , I fall in the category of F.I.R.E. financially independent , retired early . took 45 years to get where i wanted and im happy to be here with zero money worries . Even whats happened the last couple months hasnt worried me , because it wont affect it other than inflation which i planned for .
Your wisdom benefitted you greatly. Unfortunately too many didn't have the wisdom to assure their comfortable self-preservation.
HEHEHE, i chalk it up to getting very good advice at an early age and a whole lotta luck as well as listening to my grandparents and making observations .
the advice was simple , once investing , whatever that amount is , that becomes the principle, never touch the principle , and continue to add to the principle with what it earns .
always live within the means you earn from a day job and not your investments . that takes a lot of self control and frugality .
The luck part was choosing what and where to invest , me , it was with publicly traded stocks having to do with everyday military enlisted life , uniforms , boots shoes , sundries everyone had to buy it didnt start adding up until i rolled things over a few times . i made a good chunk of change with municipal bonds out of california , some even free of state taxes , they were always wanting money and offered good rates of return . cd's did good for me as well , but like i said it took 45 years for it all to really add up. but i always took what was earned and re invested .
keep in mind i was planning a retirement for 2 people not one , i was married with kids , now its just me .
I can afford a new vehicle every couple of years if i wanted . but the frugal habits i stuck to makes me remember i dont need one . to do so is simple for and to show off.
My property is paid for free and clear , no credit cards . or outstanding bills . and my monthy bills are covered with roughly a grand or slightly more a month .
here is a question that was asked of me long ago , if you had the choice of 1 million dollars cash today , or $1 that would double every day of the month, which would you choose ?
You're a lucky guy, and that's cause your're a smart guy - not that many are. Krisha is very much into the stock market.
Not being great in math I'm not going to try to answer that question.
the question actually teaches 2 lessons . and i was asked it when i was given the above advice about investing .
most people would take the 1 mill and run not walk to the exit .
those a little more savy , and that understand what compounding is and what it does and how it works , would take the $1 because at the end of a 30 day month they would walk out with just over $5 million . 31 day month would be double that .
the 2 lessons are about how compounding works , and being willing to wait for a bigger pay out .
My wife's parents house in Los Angeles has a great view of the Pacific and the Channel Islands.
During the Supply Chain back up, thousands of ships were parked out there.
This week there is no waiting atthe Port of Los Angeles.
Next week they are expecting a 35% drop in ships and layoffs will commence the following week.
And soon, the shelves willl be empty.