China’s biggest online shopping website Temu resumes direct shipping to US: Report

China’s biggest online shopping website Temu has resumed direct shipments of goods from Chinese factories to the US. According to a Financial Times report, the e-commerce platform has also increased its advertising spending in the US after a trade deal between Washington and Beijing. Temu had suspended the service in May this year. The report says that multiple Temu suppliers, partners and investors have restored so-called fully managed shipments — where it handles most of the logistics and customs formalities on behalf of suppliers — in July. In April, Trump administration had announced the cancellation of the de minimis exemption, which allowed goods worth under $800 from China to enter the US duty-free. The order meant duties of more than 100% on such shipments.The change then hit Temu hard, as its rapid growth was partly driven by shipping billions of dollars of small packages tax-free. After Trump’s order, Temu had said that it would fulfill US orders from American suppliers.Talks between Washington and Beijing in May led to a temporary reduction in tariffs. The US agreed to cut extra duties on Chinese goods to 30% for 90 days, and lowered the rate for small packages from China to 54%. The truce was extended for another 90 days this month.However, from August 29, the US will end de minimis exemptions for all countries, meaning all low-cost parcels will face tariffs. Last year, US Customs and Border Protection cleared 1.3 billion de minimis packages worth $64.6 billion.The report quotes Sheng Lu, a fashion industry professor at the University of Delaware who said “Because of across-the-board tariff increases . . . even regular brands and retailers have to increase their price substantially. This will reduce the price pressure facing Temu and Shein.”