Temu steers users to 'local' products after Trump shuts tax loophole

Core Insights - The revocation of the de minimis tax exemption by President Trump has prompted Temu to shift its strategy towards promoting products stored in U.S. warehouses to mitigate the impact of new tariffs [2][4]. Group 1: Impact of De Minimis Revocation - The de minimis exception, allowing duty-free import of goods valued under $800, has been crucial for e-commerce companies like Temu and Shein, enabling them to maintain low prices [2][3]. - The suspension of this exemption is part of a broader tariff strategy that includes an additional 10% tax on Chinese goods, affecting the cost structure for companies relying on low-value shipments [2][3]. Group 2: Strategic Shift by Temu - In response to the tariff changes, Temu has increased the visibility of products available from local U.S. inventory, particularly in its "Lightning deals" section, which is now predominantly featuring items with a "local" badge [4]. - This strategy not only ensures faster delivery to customers but also reduces reliance on direct shipments from China, although many local listings still indicate that the sellers are based in China [5].