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The Chinese bargain retailer Temu changed his business model to the US, because the new rules of the Trump administration came into force for low value.
In the last few days, Temu, you have abruptly moved its website and app to only listings for products sent by warehouses established in the US. Items that were sent directly from China, which are the previous people on the site, are now labeled in stock.
Temu made a name for himself in the US as a destination for Ultra-DECount items that were sent directly from China, such as $ 5 sneakers and $ 1.50 garlic pressure. It has been Ulable to keep prices low because of the so-called Minimis rule, so that items worth $ 800 or less can be released the land-free since 2016.
The Maas in the Maas 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 the restriction days were recovered later, while customs officials stugged to process rates and collect on a mountain of low value packages.
The end of the minimum, as well as the new rates of 145% of Trump on China, you forced them to increase prices, to suspend aggressive online advertisement and now change the selection of good goods available for American shoppers to circumvent higher levies.
A Temu spokesperson confirmed to CNBC that all sales in the US are now being treated by local sellers and said they have been fulfilled “from the country”. Temu said that the prices for American shoppers ‘remain unchanged’.
“Temu, you have recruited commercial sellers to become a member of the platform,” said the spokesperson. “The move is designated to help local traders reach more customers and grow their businesses.”
Before the change, SHHO was attempted to buy the production of Femu from China, were confronted with “import costs” between 130% and 150%. The costs often cost more than the individual item and doubled the price of many orders more than more than more.
Temu advertisements that local products “have no import costs” and “no extra costs when delivery.”
The company, owned by the Chinese e-commerce giant PDD HoldingsIn the past year you have gradually built up inventory in the achievement of the climb of commercial tensions and the removal of minimis.
Shein, which also benefited from the Maas in the law, increased the prices last week. The Fast-Fashion Retailer has added a banner with the text when paying: “Rates are included in the price you pay. You never have to pay extra when delivery.”
Many third -party sellers up Amazon Trust Chinee manufacturers to find or put together these products. The Temu competitor of the company, Caled Amazon Haul, you have relied on minimis to send products that have priced $ 20 or less directly from China to the US
Amazon said on Tuesday after a substance with the White House that it was considering showing rate -related costs on tensile products prior to the minimum closure, but that it has since deleted since those plans.
Prior to Trump’s second term, the Biden administration had also looked to limit the provision. Critics of the minimal provision claim that the American companies harm and that the shipments of fentanyl and other illegal substances facilitate, because, they say, the packages are less quickly inspected by customs companies.
– CNBCs Gabrielle Fonrouge Contribute to this report.
Watch: Trump rates mean higher prices, large losses for Amazon sellers
