Popular online marketplace Temu has ceased shipping goods directly from China to the United States. The halt is a direct consequence of the expiration of a tariff exemption that previously allowed the company to avoid substantial import duties. With the tariffs now in effect, shipping costs have risen sharply, making direct shipments from China less economically viable for the platform.
Temu's business model relied heavily on direct-to-consumer shipping from its network of Chinese suppliers. The tariff exemption allowed the company to offer competitive prices to American consumers. The end of this exemption throws that model into question.
Industry experts anticipate that Temu may explore alternative strategies to maintain its presence in the U.S. market. These could include establishing warehouses within the U.S. or shifting sourcing to countries with more favorable trade agreements. The impact on consumers remains to be seen, but price increases and potential shipping delays are likely outcomes.
Temu Stops Direct China Shipments to U.S. Due to Tariff Expiration
E-commerce platform Temu has suspended direct shipments from China to the United States. This decision comes as a tariff exemption has ended, resulting in significantly higher costs for goods. The change impacts consumers who previously benefited from lower prices on a wide range of products. Analysts predict this move could lead to increased prices and longer shipping times for some items.
Source: Read the original article at CBS