Temu pushes ‘local' products after Trump reverses trade loophole that helps Chinese companies avoid taxes

Core Insights - Temu is shifting its strategy to promote "local" products stored in US warehouses following the revocation of a trade loophole that previously allowed it to avoid taxes and customs duties [1][3][4] - The company aims to reduce its reliance on Chinese merchants and compete more effectively with US rivals like Amazon, eBay, and Walmart [7][10] Group 1: Strategic Shift - Temu is emphasizing products with a green "local" badge, indicating they are sourced from US warehouses, with prices starting as low as $1.99 [1][2] - The company has ramped up its promotion of sellers with US inventory to mitigate the impact of new tariffs and customs regulations [5][8] - By July 2024, approximately 20$5.3 billion in 2018 to $66 billion in 2023 [9] - Traditional retailers like Amazon have taken notice and launched their own low-price storefronts to compete with fast-fashion sites like Temu and Shein [7][8] - The competitive environment is intensifying as both Temu and Shein adapt their strategies to include US-based sellers and distribution centers [10][12] Group 3: Regulatory Challenges - The elimination of the de minimis exemption and the imposition of a 10% tariff on Chinese goods could lead to increased prices and shipping delays for Temu [3][4] - Recent regulatory actions, including a brief ban on inbound packages from China by the United States Postal Service, add further complexity to Temu's operations [11]