Challenges and impediments confronting Temu and similar companies in the U.S. market

Bump in the Road for Temu and Co. in the U.S.: Customs Hurdles Ahead

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Obstacles loom large for Temu and its associates in the United States - Challenges and impediments confronting Temu and similar companies in the U.S. market

Some changes are on the horizon for American shoppers, courtesy of the special tariffs imposed by former U.S. President Donald Trump. As of this weekend, the exemption for low-value goods from China with a value below $800 (approximately €704) expired. Prior to this ruling, retailers like Temu and Shein managed to bypass delivering large quantities of their products to the U.S. tariff-free.

Temu and Shein's Price Hike

The "Wall Street Journal" revealed last week that the aforementioned retailers had already made adjustments to their website prices. The revisions amounted to an increase of roughly 40 to 100 percent. According to a Temu customer from Washington, an additional import fee was tacked onto her total. Alongside the $83.80 worth of items in her cart, she was charged import duties amounting to $92.08.

Over 1 billion packages in 2021

Thanks to the expired "de minimis" exception, the influx of low-value imports in the USA has reached staggering numbers. CNN reported that a whopping 1.36 billion packages were imported this way during the last fiscal year. Previously, goods worth $800 could be imported without the recipient being responsible for paying tariffs or submitting the usual documents for purchasing foreign goods.

• Temu
• USA
• Customs
• Donald Trump
• Special Tariff
• US President
• China

Rising Dust: New Customs Requirements

Under new U.S. tariff regulations effective from May 2nd, 2025, low-value imports from China (including platforms like Temu) now face stricter customs requirements:

1. Elimination of duty-free de minimis exemption All shipments from China or Hong Kong valued ≤$800 no longer qualify for duty-free treatment, necessitating formal customs entry and duty payment.
2. Specific duty requirements for postal shipments Carriers have two options:
3. 120% ad valorem duty (percentage of shipment value), or
4. Flat $100/package duty (rising to $200/package from June 1st, 2025)
5. Heightened tariff context The implementation of these changes occurs alongside broader tariff increases under Trump-era policies:
6. 84% tariffs are now in place for certain Chinese goods (up from 34%)[2]
7. These tariffs represent a reciprocal response to China's 34% tariffs on U.S. goods[2]

These changes imply that Temu and similar platforms must now absorb these increased costs or pass them along to consumers in the form of higher prices, particularly affecting small, parcel-sized shipments which had previously been exempt under the $800 de minimis rule[1].

1. The expired de minimis exception for low-value goods from China worth less than $800 has led to a significant increase in the number of imported packages in the USA, reaching over 1.36 billion in the last fiscal year.
2. As a result of this change, retailers such as Temu now face stricter customs requirements in the USA, starting from May 2nd, 2025, including the elimination of the duty-free de minimis exemption for shipments from China or Hong Kong valued at $800 or less.
3. Under the new regulations, Temu and similar platforms will either have to pay a 120% ad valorem duty (a percentage of the shipment value) or a flat $100/package duty, increasing to $200/package from June 1st, 2025.
4. These new customs requirements come in addition to the 84% tariffs currently imposed on certain Chinese goods, which are a reciprocal response to China's 34% tariffs on U.S. goods.
5. The increased tariffs and customs requirements may result in Temu and similar platforms either absorbing the increased costs or passing them onto consumers in the form of higher prices, particularly affecting small, parcel-sized shipments previously exempt under the $800 de minimis rule.

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