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RIP Temu ...: Amazon's China rival adds import charges signalling end of dream run

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Popular Chinese e-tailer Temu has reportedly started adding import charges of about 145% in response to the tariffs imposed by Donald Trump. According to a report by CNBC, Amazon’s China rival has added substantial "import charges" to its orders, significantly increasing the cost of many items for consumers. This change introduced by Temu has doubled the price of various products on the platform. The report also adds that the change is impacting the budget-conscious Temu buyers. Also, the newly added fees is raising concerns about the affordability of goods sourced through the platform. Consumers are now facing a sharp increase in the final price at checkout.


What Temu said about the price hike Addressing the price hike issue, Temu has explained that the products imported into the US are subject import charges. The Chinese e-tailer also said that the charges will cover all the customs-related costs including the import fees paid to customs on behalf of the customers.


“Items imported into the US may be subject to import charges. These charges cover all customs-related processes and costs, including import fees paid to customs authorities on your behalf. The amount listed may not represent the actual amount paid to customs authorities,” said Temu on its website.


Temu and Shein announced price increases earlier this month following the imposition of a 145% tariff on many Chinese imports and the planned end of the de minimis exemption on May 2. Recently, Shein also announced significant price increases across its product categories in the United States, with some items seeing hikes as high as 377%.

Impact of tariff changes on Shien and TemuThe elimination of the de minimis provision on May 2, which currently allows duty-free entry for goods under $800, will significantly impact Shein and Temu. This exemption has been central to their ultra-low price strategy for clothing, accessories, and household goods, and its removal will likely force a revision of their pricing due to increased operating costs.

The tariff changes are expected to impact 4 million low-value parcels arriving in the US daily, many of which originate from China. US retailers, including Amazon, have already begun adapting to the new landscape by introducing low-cost storefronts featuring American brands like Adidas, Levi’s, and Gap.
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