Temu steers users to 'local' products after Trump shuts tax loophole
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Temu is adjusting its strategy by promoting products from U.S. warehouses after President Trump's decision to revoke the de minimis trade provision, which previously benefited Chinese e-commerce companies like Temu and Shein.
February 06, 2025 | 12:45 am
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NEGATIVE IMPACT
PDD, the parent company of Temu, may face challenges due to the revocation of the de minimis trade provision, which previously facilitated its growth in the U.S. market.
The de minimis provision allowed Temu to grow rapidly in the U.S. by shipping products directly from China. Its revocation means Temu must now rely more on U.S. warehouses, potentially increasing costs and affecting PDD's growth strategy.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80