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The Chinese Temu deals retailer has changed its business model in the United States while the new Trump administration rules on low value shipments have entered on Friday.
In recent days, TEMU has suddenly moved its website and application to display only lists for products shipped to warehouses based in the United States. The items sent directly from China, which previously covered the site, are now labeled as out of stock.
TEMU has made a name for itself in the United States as a destination for ultra-short items sent directly from China, such as $ 5 sneakers and garlic presses at $ 1.50. He was able to maintain low prices due to the so -called minimis rule, which allowed articles worth $ 800 or less to enter the franchise country since 2016.
The flaw expired on Friday at 12:01 p.m. on Friday after an executive decree signed by President Donald Trump in April. Trump briefly suspended the minimis rule in February before restoring the arrangements a few days later when customs officials had trouble treating and collecting prices on a mountain of low value packages.
The end of Minmis, as well as the new rates of 145% of Trump on China, forced TEMU to increase prices, to suspend its aggressive online advertising thrust and now to modify the selection of goods available for American buyers to circumvent higher samples.
A TEMU spokesperson confirmed to CNBC that all sales in the United States are now managed by local sellers and said they were filled “inside the country”. TEMU said prices for American buyers “remain unchanged”.
“TEMU has actively recruited American sellers to join the platform,” said the spokesperson. “This decision is designed to help local merchants reach more customers and develop their businesses.”
Before the change, buyers who tried to buy TEMU products shipped to China were faced with “import costs” between 130% and 150%. The costs are often more expensive than the individual article and have more than doubled the price of many orders.
TEMU announces that local products have “no import costs” and “no additional costs on delivery”.
The company, which belongs to the Chinese electronic commerce giant PDD holdingsGradually accumulated its inventory in the United States in the past year in anticipation of the climbing of trade tensions and the elimination of Minmis.
Shein, who also benefited from the escape, moved to increase prices last week. The fast fashion retailer added a banner to the cash register who says: “The prices are included in the price you pay. You will never have to pay more on delivery.”
Many third -party sellers on Amazon Count on Chinese manufacturers to obtain or assemble their products. The company’s competitor of the company, called Amazon Haul, relied on Minmis to send products at a price of $ 20 or less directly from China to the United States
Amazon said Tuesday following a dust with the White House that had planned to show the costs related to the tariffs on transport products before the Minmimis cut, but that he has since canceled these plans.
Before Trump’s second term, Biden administration had also sought to reduce the provision. The criticisms of the provision of Minmimis argue that it harms American companies and that it facilitates fentanyl expeditions and other illicit substances, because, they say, the packages are less likely to be inspected by customs agents.
– CNBC Gabrielle Fonrouge contributed to this report.
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