Temu and Shein reportedly have an opportunity to restock their U.S. warehouses during a temporary reduction in tariffs.An agreement between the U.S. and China that was announced Monday (May 12) lowered tariffs on most Chinese imports from 125% to 30% for 90 days and lowered the tariffs on low-value packages from 120% to 54%, CNBC reported Tuesday (May 13).This temporary reprieve gives Temu and Shein a chance to adjust their supply chains while still fulfilling orders, according to the report.When the previo ...

Temu and Shein have just found themselves in a strange spot in the new 90-day reprieve in the trade war with China. President Trump has loosened the tariffs to 30% (down from 145%) as part of a plan to open the negotiations for a new trade deal. However, high tariffs remain on small packages shipped directly from China — the kind that Temu and Shein typically send.Until very recently, Temu and Shein benefited from the de minimis exception, a loophole that allowed for packages under $800 in value to ship wi ...

Core Viewpoint - The closure of the de minimis rule and the imposition of high tariffs on Chinese imports have disrupted the business models of Temu and Shein in the U.S. However, experts believe these e-commerce companies will continue to be significant players in the American online retail market [1][4]. Impact of Trade Policy - The de minimis rule, which previously exempted U.S. imports worth $800 from tariffs, has been closed for shipments from China, exposing Temu and Shein to tariffs as high as 120% or a flat fee that will increase from $100 to $200 [2][3]. - The removal of this exemption has led to rising prices on Temu and Shein, with Temu ceasing direct shipments from outside the U.S. altogether [3]. Competitive Strategies - Despite the challenges, experts assert that Temu and Shein have contingency plans and are capable of adapting to the new tariff environment [5][6]. - Both companies have been accelerating localization strategies, onboarding goods from American sellers to mitigate tariff impacts [7][8]. Pricing Dynamics - Prices on Shein have reportedly increased between 5% and 50% across various categories, with the most significant hikes in toys, games, and beauty products [13]. - Even with price increases, Temu and Shein may still offer products at significantly lower prices compared to competitors like Amazon, maintaining their price competitiveness [14][15]. Supply Chain Adaptability - Temu and Shein's success is attributed to their agile supply chains that quickly adapt to consumer trends, with Shein employing small-batch production to efficiently test and scale products [17]. - The companies utilize effective marketing strategies, including gamification and social media engagement, to maintain consumer interest and drive sales [20][21].

Temu has reportedly stopped shipping products from China directly to U.S. consumers due to the elimination of the de minimis exemption that had shielded small packages from U.S. tariffs.“This shift is part of Temu’s ongoing adjustments to improve service levels,” a Temu spokesperson told the Wall Street Journal (WSJ) in a report posted Friday (May 2).This marks a “dramatic shift” in the company’s business model, the report said.Temu had rapidly grown its business in the U.S. by sending small, inexpensive it ...

Temu on Friday said it has stopped shipments of cheap goods from China to the US as President Trump axed a trade loophole that allowed the fast-fashion giant to sidestep tariffs and customs checks.Its US website has shifted to offer only what it calls “local” items – or products that were shipped overseas in bulk and stored in US warehouses in a mad dash to beat Trump’s tariffs.“All sales in the US are now handled by locally based sellers, with orders fulfilled from within the country,” a Temu spokesperson ...

Core Insights - The expiration of the de minimis rule has significantly impacted Temu's business model in the U.S., forcing the company to adapt to new tariffs and regulations [3][4][6]. Group 1: Business Model Changes - Temu has shifted its website and app to display only products shipped from U.S.-based warehouses, with items shipped directly from China now labeled as out of stock [3]. - The company has confirmed that all U.S. sales are now handled by local sellers and fulfilled domestically to improve service levels [4]. - Temu is actively recruiting U.S. sellers to join its platform, aiming to help local merchants reach more customers and grow their businesses [5]. Group 2: Pricing and Tariffs - The end of the de minimis rule and the introduction of 145% tariffs on China have forced Temu to raise prices and suspend aggressive online advertising [4]. - Customers previously faced import charges between 130% and 150% for items shipped from China, which often exceeded the cost of the items themselves [5]. - Temu now advertises that local products have "no import charges" and "no extra charges upon delivery" [6]. Group 3: Industry Context - Other companies, such as Shein, have also raised prices in response to the end of the de minimis rule, indicating a broader trend in the industry [7]. - Amazon considered showing tariff-related costs on its Haul products but scrapped those plans following discussions with the White House [8]. - The Biden administration had previously looked to curtail the de minimis provision, reflecting ongoing trade tensions and regulatory scrutiny [9].

Core Insights - US tariff changes have led to significant price increases for products from Chinese e-commerce platforms Temu and Shein, with some items seeing price hikes of up to 377% [1][4][5] - Temu is shifting its business model by no longer shipping products from China to the US, opting for local fulfillment to maintain pricing stability [2] - Shein has implemented notable price adjustments across various categories, with beauty and health products increasing by an average of 51%, home and kitchen goods by 30%, and women's clothing by 8% [4] Company Actions - Temu has announced that all sales to US customers will be managed by locally based sellers, aiming to keep prices unchanged during the transition to a local fulfillment model [2] - The company is actively recruiting US sellers to join its platform to facilitate this new model [2] Industry Trends - The elimination of the "de minimis" exemption and the imposition of higher tariffs have disrupted the business models of fast-fashion retailers, resulting in increased costs for US consumers [5] - The price adjustments reflect a broader trend of rising costs on imported goods faced by US shoppers [5]

David Meier has no position in any of the stocks mentioned. Jeff Santoro has no position in any of the stocks mentioned. Kevin Jackson has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. ...

PDD Holdings Inc. (PDD) , the parent company of e-commerce platforms Pinduoduo and Temu, has experienced a troubling start to 2025, with shares plummeting 13.6% in the past six months. This performance has raised concerns among investors about the company's near-term prospects, despite its impressive growth trajectory in previous years. As the stock continues to face downward pressure, investors are questioning whether current price levels represent a buying opportunity or a signal to remain cautious.PDD Ho ...

Discount eTailers Temu and Shein reportedly raised prices in response to new U.S. tariffs. Temu started adding "import charges" of about 145%, while Shein raised prices without adding a separate charge, CNBC reported Monday (April 28). Both companies warned their customers earlier this month that they would raise prices after President Donald Trump imposed tariffs and vowed to end the de minimis exemption that allows packages valued under $800 to enter the United States without paying duties, according to t ...