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The Chinese bargain retailer, Temu, changed his business model in the US.
In recently, Temu has abruptly changed its website and application to show only listings of products sent from stores based in the United States. The articles sent directly from China, which previously covered the site, are now labeled as exhausted.
Temu made a name in the USA. As a destination for ultra discounts sent directly from China, such as $ 5 shoes and garlic presses of $ 1.50. It is bone capable of maintaining low prices due to the so -called minimis rule, which has allowed DERTH $ 800 or less to enter the tax free of tax since 2016.
The escape expired on Friday at 12:01 AM EDT as a result of an executive order signed by President Donald Trump in April. Trump briefly suspended the minimis rule in February before restoring the provisions later, since customs officials fought to process and collect tariffs on a mountain of low value packages.
The end of the minimis, as well as the new 145% tariff rates in China, has forced Temu to increase prices, suspend its aggressive advertising impulse online and now alter the selection of products available for US buyers to avoid greater taxes.
A Temu spokesman confirmed to CNBC that all sales in the United States now managed by local sellers and said they are fulfilled “from within the country.” Temu said the price for US buyers. “Still unchanged.”
“Temu has been active by recruiting American vendors to join the platform,” said the spokesman. “The movement is designed to help local merchants reach more customers and grow their business.”
Before the change, buyers who tried to buy fears sent from China faced “import positions” or between 130% and 150%. Rates often cost more than the individual article and more than double the price of many orders.
Temu announces that local products do not have “import positions” and “there are no additional charges when delivering.”
The company, owned by the Chinese electronic commerce giant PDD HoldingsHe has gradually accumulated his inventory in the US. During the last year in compensation of increasing commercial tensions and the elimination of minimis.
Shein, who has also benefited from the escape, moved to increase prices last week. The fast fashion retailer added a banner at the end of the purchase that says: “Tariffs are included in the price you pay. You will never have to pay more in delivery.”
Many third party sellers in Amazon Trust Chinese manufacturers to obtain or assemble their products. The company’s Temu competitor, called Amazon Haul, has confirmed the minimis to send price products at $ 20 or less directly from China to the United States.
Amazon said Tuesday after a dust powder with the White House, he had considered showing costs related to the rate in Hul products before the minimis limit, but since then he has discarded those plans.
Before Trump’s second mandate, the Biden administration had also sought to reduce disposition. Critics of Minimis’s disposition argue that it damages US companies and facilitates fentanyl shipments and other illicit substances because, they say, packages are less likely to be inspected by customs agents.
– CNBCS Gabrielle Fonrouge Contributed to this report.
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