Temu, a Chinese online marketplace known for affordable products, has adjusted its strategy in response to President Donald Trump’s tariffs. These tariffs, which include a 145% increase on Chinese goods, have impacted Temu’s pricing and operations.
Initially, Temu warned customers of price increases due to rising operating expenses caused by global trade rules and tariffs. This led to a decline in app downloads and backlash from shoppers due to added “import charges” that doubled some order prices.
To address consumer outrage, Temu decided to stop shipping products directly from China to the U.S., instead relying on locally based sellers within the country. Items shipped from local warehouses will have no extra charges or import taxes.
This shift comes after the retirement of the “de minimis” trade rule on May 2, which previously allowed goods under $800 from China to enter the U.S. duty-free. Amid growing U.S.-China tensions, consumers remain concerned about the impact of tariffs on prices for Chinese-made products.
— new from TheStreet