Temu directs users to ‘local’ products after Trump ends minimis

Chinese retailer Temu has been emerging more products in its application that can be sent from stores in the United States below President Donald Trump’s decision to revoke a popular fiscal escape.

The exception of almost centenary, known as Minimis, has been used by many electronic commerce companies to send goods worth less than $ 800 to the US tax free. UU. Triunfo On Saturday He suspended the exemption as part of new tariffs that include an additional 10% tax on Chinese products.

De Minimis has helped boost the explosive growth of Temu and Shein in the US even furniture and electronic products.

With the missing tariff exemption, Temu has significantly increased its promotion of vendors that have inventory in US stores, instead of items that are sent directly from China. A list of listings in the “Lightning Orices” section of Temu shows that it is almost completely dominated by products with a “local” green badge.

By promoting local inventory, Temu products not only arrive faster at the doors of buyers, but the company also reduces its dependence on vendors that send directly from China. Although the products are stored in US warehouses. Uu., Many local listings indicate that the items are sold by China -based companies.

TeMU representatives did not respond to comments requests.

The promotion of US products. UU. Temu also places it in a more direct competition with Amazon, eBay and Walmartwho have also registered sellers in China who send products abroad to their warehouses. Last year, Amazon realized the dramatic growth of Temu and Shein in the United States when He launched his own budget store, called Haul.

Temu, which is owned by a Chinese retailer PDD HoldingsHe began incorporating vendors with inventory in US stores in March. For July, approximately 20% of the US sales from Temu came from these vendors, not merchants based in China, according to the electronic market research firm, according to electronic commerce. Market pulse.

Temu, Shein and other Chinese e -commerce companies are trying to minimize the level of interruption of their services, since they face new and stricter customs requirements. They were thrown to greater chaos Tuesday night When the United States postal service abruptly announced that it suspended the incoming packages of China and Hong Kong “until new notice.”

Less than 12 hours later, the USPS He reversed his decisionand resumed the acceptance of packages of those regions. The agency also said that it would work with customs and border protection of the United States. “Implement an efficient collection mechanism so that the new tariffs of China guarantee the lowest interruption of the delivery of packages.”

Uncertainty has created volatility 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 Minimis willingness say that it has provided an unfair advantage to Chinese electronic commerce companies, and created an influx of packages that are “subject to minimum documentation and inspection”, which raises concerns about falsified and insecure goods.

Others have advocated that the exemption of Minimis remains in place, saying that their elimination would carry customs officials and lead to higher government costs.

“At some point there will be 3 million of these goods accumulating one day and customs can do the best one can, but they are not equipped,” said Hugo Pakula, CEO of the Company Company of the Tru Identity supply chain. “They have to make 10 times more projections this week than last week.”

CBP has said that it processed more than 1.3 billion minimis shipments in 2024. A 2023 report From the select committee of the Chinese Communist Party Chamber, he discovered that Temu and Shein are “probably responsible” for more than 30% of minimis shipments in the United States

Shein has also been courting American buyers and vendors. The company opened distribution centers in states such as Illinois and California in 2022, and a Seattle supply chain center last year. The company saying The Seattle center would allow him to “locate and support the fastest delivery times for US consumers.”

LOOK: Amazon Haul faces Temu