After President Donald Trump closed a business hole that exempted low-value products from tariffs, Temu, a well-known Chinese e-tailer, stopped importing goods into the United States.
Temu has previously benefited from a provision known as the “de minimis guideline” that excluded items worth$ 800 or less from taxes. The business’s business design enables it to collaborate with Taiwanese manufacturers to deliver premium-priced clothing, electronics, and other goods directly from China to American customers.
But, Trump signed an executive order in April that would end the provision and take effect on May 2. Temu announced on Friday that it would no longer deliver goods to American consumers instantly from Chinese companies. Otherwise, it will rely on local home businesses in the United States to sell its goods.
The U.S. version of Temu’s site then only lists products that have been stored locally, with items that have been shipped from China listed as out of stock.
Temu confirmed in a speech to the Washington Examiner that it is” transitioning to a local realization unit” and “actively recruiting U.S. sellers to add the platform.”
” All sales in the U.S. are now handled by local businesses, with orders being fulfilled from within the nation,” the organization said. The walk is intended to increase the number of customers that local businesses can get.
Similar gaps have existed for almost a millennium since Congress approved the coverage in the 1930s, but the de minimis law exemption came into effect in 2016.
Foreign businesses like Temu and Shein have historically used the deduction to promote low-priced goods to American consumers.
Critics claim that there is proof that online retailers are violating human rights and employ forced laborers to produce fast-fashion merchandise. They worry that Temu is operating operations in China’s Xinjiang place, which might be exploiting the oppressed Uyghur minority, which some nations regard as the target of genocide. Critician concerns have also been raised about the dangers that can be found in Temu’s items, such as phthalates, perfluoroalkyl and polyfluoroalkyl substances, and elevated amounts of lead.
When dealing with businesses like Temu, the Trump presidency has focused mostly on the economical side. The White House believes that outsourced jobs and businesses to foreign places is certainly worth the cost of cheap goods and lower prices.
Trump claimed last month that there was” a big scam going on against our country, against really small businesses” because of the import duty exemption for packages worth$ 800 or less.
His remarks come after Customs and Border Protection reported that it handled more than 1.3 billion de minimis supplies in 2024, an increase from the previous year’s over 1 billion supplies.
Temu and Shein will be among the Chinese businesses that are currently content to Trump’s severe tariffs on Beijing now that the business provision has expired. To force it to the negotiating table and come up with a new trade deal, the president has placed responsibilities of up to 145 % on the nation.
The president hopes a deal may improve business practices that he believes are unfair to American workers and businesses is being discussed with China.
On Wednesday, January 29, 2025, President Donald Trump speaks before signing the Laken Riley Act in Washington’s East Room. ( AP Photo/Evan Vucci)
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Treasury Secretary Scott Bessent stated next year,” I believe over time we will see that the Chinese taxes are unworkable for China.” ” Realize that we are the nation with the lowest debt. They charge them to remove these taxes because they sell about five times more goods to us than we do.
Shein has yet to get such action, despite Temu fully retiring items shipped from China to the U.S. to avoid paying responsibilities. However, it has already significantly raised its prices, with the top 100 products in the beauty and health category seeing an average increase of 51 %, according to Bloomberg.
