US EditionRetailer Temu's Daily US Users Halve Following End of 'De Minimis' Loophole
- Temu, a global discount e-commerce platform owned by PDD Holdings, saw its daily U.S. Users drop by 58% in May 2025 following a key trade policy change.
- The decline occurred after the U.S. Terminated the de minimis exemption on May 2, which had previously permitted Chinese firms to send shipments valued below $800 to the United States without incurring tariffs.
- In response, Temu cut U.S. Advertising spending and shifted to fulfill orders mainly from U.S.-based warehouses, marking a significant disruption to its low-price business model reliant on direct Chinese shipments.
- Trade attorney Michael Lowell noted that the court's decision effectively overturned Trump's previous elimination of the de minimis exemption, while Morgan Stanley analyst Simeon Gutman cautioned that Temu's competitive position would likely decline if tariffs remain in place.
- These developments have pressured Temu and its parent company in the U.S. Market, causing sales and user engagement declines, while Temu's growth has shifted toward non-U.S. Markets where users now represent 90% of global monthly activity.
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Shein and Temu see U.S. demand plunge as loophole for cheap goods closes
Use of low-cost e-commerce giants Temu and Shein has slowed significantly in the key U.S. market amid President Donald Trump’s tariffs on Chinese imports and the closure of the de minimis loophole, new data shows.
·United States
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Retailer Temu's daily US users halve following end of 'de minimis' loophole
Link URL: https://www.reuters.com/business/retail-consumer/retailer-temus-daily-us-users-halve-following-end-de-minimis-loophole-2025-06-02/ Comments URL: https://tildes.net/~finance/1oea/retailer_temus_daily_us_users_halve_following_end_of_de_minimis_loophole Votes: 7 Comments: 0
·United Kingdom
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Leaning Left2Leaning Right1Center7Last UpdatedBias Distribution70% Center
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