Online retailer Temu has taken a significant step by preventing U.S. customers from purchasing items from Chinese sellers, following the imposition of a 145 percent tariff on these goods.
This development comes in the wake of the expiration of the de minimis rule, which previously exempted foreign goods valued at $800 or less from duties and tariffs.
According to Gateway Pundit, President Donald Trump was instrumental in ending this policy, citing the need to curb the influx of drugs into the United States. The White House elaborated on this decision, stating, "President Trump is targeting deceptive shipping practices by Chinese-based shippers, many of whom hide illicit substances, including synthetic opioids, in low-value packages to exploit the de minimis exemption."
During a Cabinet meeting, President Trump emphasized the significance of this move, describing it as a measure against a "big scam going on against our country, against really small businesses."
In response to the policy change, Temu initially considered raising prices for American consumers. However, the company has now opted to mark items from Chinese sellers as out of stock. A Temu representative explained that the company is now focusing on fulfilling orders through local sellers, stating, "Temu has been actively recruiting U.S. sellers to join the platform." The representative further noted, "The move is designed to help local merchants reach more customers and grow their businesses."
Despite these adjustments, CNBC highlighted that Temu had been stockpiling China-made products in the U.S. in anticipation of the tariff changes. Wired reported that products labeled as 'Local' were imported before the new duties took effect. Meanwhile, Shein, another retailer, has incorporated the tariffs into the prices paid by customers, as reported by CNBC.
Kim Glas, president of the National Council of Textile Organizations, praised the closure of the loophole, stating it had previously allowed "unsafe and illegal Chinese goods" into the U.S. "Todays action by the administration is an important step forward to help rebalance the playing field for American manufacturers," Glas remarked.
The Washington Post, referencing a report from the Peterson Institute, noted that Temu and Shein orders account for approximately 30 percent of daily package shipments to the U.S. Furthermore, a report from House Republicans estimated that nearly half of the de minimis shipments entering the country originated from China.
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