Discount Chinese e-commerce retailer Temu is pushing its so-called “local” products following President Trump’s closure of a loophole that enabled the company to avoid taxes and U.S. customs.
On Thursday, Temu began promoting items with a green “local” badge. To call the items local is a stretch, as the only requirement is that the goods be shipped to customers from a U.S. warehouse. However, the goods may still have originated overseas.
Temu’s pivot to “local” comes in the wake of President Trump’s latest economic measures against China. These include a 10% tariff on imports from the country and the elimination of the controversial “de minimis” exemption.
Under the former exemption, goods entering the U.S. valued at $800 or less were not subject to duties or taxes.
However, as reported by The Dallas Express, the rule was blamed for a surge in cheaply made Chinese goods flooding the market without incurring additional charges. According to U.S. officials, the volume of goods entering the U.S. also made it difficult to screen items for security.
In just a few years, Temu’s popularity in the U.S. has soared, at least partially driven by access to ultra-low-priced items. Incredibly, one survey last year found that nearly six out of 10 U.S. shoppers had made purchases on the platform.
With the exemption scrapped and tariffs in place, dirt-cheap items from overseas could increase in price. Additionally, products may take longer to arrive if faced with added customs hurdles.
By focusing on selling items stocked in U.S. warehouses, Temu can avoid the added fees and get items delivered quickly to American consumers, not unlike some of its competitors, such as Amazon and Walmart. In response to the growing competition from companies like Temu, Amazon launched Amazon Haul, a platform dedicated to items that cost less than $20.