Trump Tariffs Force Temu and Shein to Rethink U.S. Strategies

The revocation of a key tax exemption and new tariffs on Chinese goods prompt operational shifts for major e-commerce players.

President Trump has imposed a 10% tariff on Chinese imports and revoked the de minimis exemption, which allowed duty-free entry for goods under $800.
Temu and Shein have increased reliance on U.S. warehouses to minimize the impact of tariffs and expedite delivery times for American consumers.
The U.S. government is considering adding Temu and Shein to the forced labor list, citing concerns over supply chain practices, though no final decision has been made.
The removal of the de minimis rule is expected to raise prices and slow shipments for Chinese e-commerce firms, with some vendors reporting a 30% increase in logistics costs.
Both companies face growing scrutiny over labor practices and product safety, while competitors like Amazon are responding with initiatives like budget-friendly storefronts.