The Chinese e-commerce giant Temu is making a drastic change to its US operations. It’s stopping the sale of products shipped directly from China. This move comes after the US government scrapped a tax exemption that allowed packages worth up to $800 to enter the country duty-free.
The decision is a direct response to the new tariffs imposed by the US government, which have hiked prices by up to 150%. To adapt, Temu is focusing on products from US sellers with stock in local warehouses. The company claims this shift is designed to support American businesses.
Many analysts, however, are skeptical about Temu’s new strategy. They question whether the company can remain viable without the ultra-cheap Chinese products that fueled its growth. Temu’s main competitor, Shein, is also likely to feel the pinch.
Industry Impact
The new tariffs have sent shockwaves through the e-commerce industry. Amazon, which relies heavily on Chinese manufacturers, had considered displaying the tariffs in customers’ shopping carts. However, it backed down after facing political pressure. The move would have given customers a clearer picture of the additional costs.
The changes in the US e-commerce landscape are significant. Companies are being forced to rethink their strategies in response to shifting trade policies. As the situation continues to unfold, one thing is clear: the way American consumers shop online is on the verge of a major change.