Temu halts shipping direct from China as de minimis tariff loophole is cut off

[BumRushDaShow]

Source: NBC News/CNBC

May 3, 2025, 8:25 AM EDT / Source: CNBC


Chinese bargain retailer Temu changed its business model in the U.S. as the Trump administration’s new rules on low-value shipments took effect Friday.

In recent days, Temu has abruptly shifted its website and app to only display listings for products shipped from U.S.-based warehouses. Items shipped directly from China, which previously blanketed the site, are now labeled as out of stock.

Temu made a name for itself in the U.S. as a destination for ultra-discounted items shipped direct from China, such as $5 sneakers and $1.50 garlic presses. It’s been able to keep prices low because of the so-called de minimis rule, which has allowed items worth $800 or less to enter the country duty-free since 2016.

The loophole expired Friday at 12:01 a.m. EDT as a result of an executive order signed by President Donald Trump in April. Trump briefly suspended the de minimis rule in February before reinstating the provision days later as customs officials struggled to process and collect tariffs on a mountain of low-value packages.

Read more: https://www.nbcnews.com/business/business-news/temu-halts-shipping-direct-china-de-minimis-tariff-loophole-cut-rcna204597

[getagrip_already]

1. There is now a minum tarrif of $20/item or 30% of its value, whichever is greater....

For small dollar purchases.

Nobody was going to pay $20 for a $3 item.

But eventually their stocks in us warehouses will run out.

Was in a rite aid today and about 70% of their shelves in non pharma products were empty.

[Blues Heron]

2. Look how they frame it as trump closing a loophole instead taxing the bejeezus out of us

[Aussie105]

7. The 'loophole' being closed isn't so much a loophole . . .

as it is creating a side channel siphoning off money from your purse into government coffers. (Or Donnies personal war chest.)
Every time you buy something from China.

I guess . . . do not buy . . . is always an option?

[forgotmylogin]

3. So by doing this, Trump is able to decide what companies can do business in the US. n/t

[kimbutgar]

4. Now they say local seller and no tariffs on this purchase

I ordered a standing clothes closet from them and it is stuck in customs now. But I think Temu shipped a lot of stuff in advance knowing the orange Hitler was going to institute tariffs on things coming into the country,

[James48]

5. You can bet that there will be no room at the customs warehouse

If everybody abandons their purchases because they don’t want to pay the tariff, then will it just sit there and take up space?

I can see lots of government sales of abandoned cargo that was not paid tariff wise.

[Aussie105]

6. Temu, eBay, AliExpress, etc.

Last edited Sun May 4, 2025, 04:39 AM - Edit history (1)

All ship from China.

Going to get constipated - the supply chain I mean.
People will stop buying and the paperwork needed on any incoming items will just grind things to a halt.

Not just the cheap trinkets either, recognised US brands have their factories in China.
Every laptop maker, printer maker has their manufacturing presence in China - think Apple phones, Dell laptops and Hewett-Packard printers are made in the US of A?

But give it a decade or two and I'm sure the local production of sneakers and garlic presses will be there to satisfy demand.
But the US prices won't be to anyone's liking.
Nor the quality. Startups will always have problems with quality control, no matter what country they are in.