Have you checked prices on Temu’s website since high tariffs were implemented on products from China?
Though when these tariffs originally went into effect, the discount Chinese retailer said it planned to both raise prices and show import charges on consumer purchases online, it seems to be taking a different tack now. It claims no price increases currently and instead of shipping directly from China, customers can expect packages to be delivered from US warehouses. This may preserve its price advantage over competitors, at least temporarily.
Though steep tariffs on Chinese imports have been in place since early April, a new wrinkle is particularly important to this retailer. Before last Friday, imports valued at less than $800 were exempted from tariffs under the “de minimis” rule. This allowed companies like Temu and rival Shein to ship inexpensive merchandise directly from Chinese manufacturers to customers for ultra-low prices. Such imports have been growing at a brisk pace, more than doubling to $1.36 billion in 2024 compared to four years earlier. The Biden administration had taken notice of the trend and Trump’s ended the so-called loophole last week.
Though items on Temu’s site are now marked ‘local’ and will be shipped from within the United States, they have likely been preemptively shipped from China to warehouses when the company took note of changing attitudes towards the de minimis provision. Some US customers have already complained on social media that many items are no longer available for purchase and others may be in short supply. Some speculate that this workaround will only work for a short period of time.
What may Temu’s plan be when products need to be restocked?
Activities:
- Ask students: Do you shop on Temu’s website? If prices were to double, would you shop there?
- Have students visit the Temu site here: https://www.temu.com/. Browse the available categories or look up products of interest. What products would you consider buying? How do prices compare to other retailers for these items (look this up)? What products are marked ‘local’ and can you tell what that means? Is the availability of products sufficient currently?
- Ask students to form small groups and discuss what strategies Temu might pursue if high Chinese tariffs remain in place for more than a few months. What would you recommend?
Sources: Maruf, Ramishah, (05 May 2025) Temu says it’s only shipping from the US. That doesn’t mean the products are made here, CNN.com. Lu, Shen, (05 May 2025) Temu Halts Shipments From China to U.S. Customers, Wall Street Journal.
