US online marketplace Temu is stopping sales of goods imported directly from China to its customers, as a duty-free rule for low-value packages has been closed. The move comes after the Trump administration aimed to tackle the illegal importation of synthetic opioids like fentanyl.
Temu will now handle all US sales through “locally based sellers,” with orders fulfilled within the country. This change is expected to help local merchants reach more customers and grow their businesses.
The closure of the de minimis exemption, which allowed retailers to ship packages worth less than $800 without paying duties or taxes, has sparked concerns about the impact on US consumers and online shoppers. The exemption accounted for over 90% of all cargo entering the US, with Chinese online retailers like Temu benefiting greatly from it.
The move is part of Trump’s efforts to crack down on goods from China, imposing taxes of up to 145% on imports since returning to the White House in January. The closure of the exemption will now apply a 120% tax rate or a flat fee of $100 for packages under $800, which is expected to result in higher prices for US consumers.
While some experts argue that ending the exemption will curb illegal drug trafficking, others believe it will create more work for US border officials and shift their focus away from the southern border. The move has also sparked concerns about the impact on British High Street retailers, with the UK government reviewing its own low-value import rules in response to the US action.
Source: https://www.bbc.com/news/articles/cwy79j2n7d4o