Temu Changes Shipping Model as US Tariff Loophole Closes

Temu, the Chinese-owned online marketplace, is altering its shipping strategy in the United States following the implementation of new regulations targeting low-value shipments. The changes, which went into effect Friday, effectively close a loophole that allowed many of Temu's packages to bypass tariffs. Under the previous system, known as the 'de minimis' rule, shipments valued under a certain threshold (typically $800) could enter the U.S. without being subject to import duties. This allowed companies like Temu to ship goods directly from China to American consumers at significantly lower prices.

The Trump administration's new rules have narrowed the scope of the de minimis exception, leading Temu to adjust its business model. While the exact details of Temu's new shipping practices remain somewhat unclear, analysts suggest the company will likely rely more heavily on warehouses located within the United States to fulfill orders. This would involve importing goods in bulk and then distributing them domestically, incurring tariffs on the larger shipments but potentially offsetting the cost through economies of scale and faster delivery times.

The impact of these changes on Temu's pricing and popularity remains to be seen. Consumers may experience slightly higher prices or longer shipping times. However, Temu's commitment to providing affordable goods suggests that the company will continue to seek ways to offer competitive prices in the U.S. market.