Temu directs users to “local” products after Trump ends minimum

Chinese online retailer Temu has been surfaced on its app after President Donald Trump decided to remove the popular tax loophole.

Many e-commerce companies use nearly a century-old exception, called De Minimis, to send goods worth less than $800 to the U.S. tax-free. Trump will suspend exemptions on Saturday as part of the new tariffs, including a 10% tax on Chinese goods.

De Minimis helped drive Temu and Shein's explosive growth in the U.S. by allowing companies to bypass taxes on low-value goods and collect taxes in the U.S. and maintaining its rock prices in terms of ranging from shoes and clothing to furniture and electronics.

As tax exemptions disappeared, Temu greatly improved the promotion of sellers in stock in U.S. warehouses, rather than items shipped directly from China. A list scan in Temu's “Lightning Deal” section shows that it is almost entirely dominated by products with green “local” badges.

By promoting local inventory, Temu's products not only reach shoppers' doorsteps faster, but the company also reduces the reliance on sellers shipped directly from China. Even if the products are stored in U.S. warehouses, many local listings indicate that the items are sold by Chinese companies.

Temu's representative did not respond to a request for comment.

Temu promotes American products, and also makes it with Amazon,,,,, ebay and WalmartThis has also been signed in China for sellers to ship items to warehouses. Last year, Amazon noticed a sharp increase in Temu and Shein in the U.S. when it launched its own budget storefront (called Haul) in the U.S.

Temu, owned by Chinese online retailers PDD holdingsold and sellers in U.S. warehouses began in March. By July, about 20% of Temu's U.S. sales came from these sellers rather than Chinese-based merchants, according to Market Place Pulse, an e-commerce market research firm.

Temu, Shein and other Chinese e-commerce companies are trying to minimize the level of their service disruptions when facing new, more stringent customs requirements. They were in chaos again Tuesday night, when the U.S. Postal Service suddenly announced that it would suspend inbound plans from China and Hong Kong until further notice. “

Less than 12 hours later, the USP reversed its decision and resumed receiving packages from these areas. The agency also said it will work with the U.S. Customs and Border Protection to “implement an effective collection mechanism for the tariffs of New China to ensure minimal interruptions in packaging delivery.”

Uncertainty caused PDD's share price to fall 6% on Monday, down 6% on Tuesday and down more than 3% on Wednesday.

Critics say this provides unfair advantages for Chinese e-commerce companies and creates a series of influx of “parcels with minimal documentation and inspections” that has sparked a slew of fake and insecure goods. Worry.

Others argued that the exemption remained in place, saying their evacuation would cover tariff officials and result in higher government costs.

“At some point, there are 3 million of the merchandise that are stacked every day to do their best, but without equipment,” said Hugo Pakula, CEO of TRU Identity, a supply chain compliance company. “They have to be more than last week this week.” 10 times more screenings.”

CBP said the company handled more than 1.3 billion De Minimis shipments in 2024. A 2023 report from the Chinese Communist Party’s House Selection Committee finds Temu and Shein may be “possibly responsible” for more than 30% of De Minimis shipments

Shein has also been proposing to American buyers and sellers. The company opened distribution centers in 2022 in states, including Illinois and California, and last year it opened a supply chain center in Seattle. The company said the Seattle hub will make it “localized and support faster delivery times for U.S. consumers.”

watch: Amazon Towling Replaces Temu