Temu begins to replicate its value chain in the United States. The Asian platform, which has seen as its business model based on a very low price is in danger after the closing of the legal vacuum de minimisis immersed in a process of expanding its supply chain to the United States.
The definitive purpose of the regulations this week, which allowed low value packages to enter the country without paying taxes, has already led to a price increase in Temu articlesthrough an automatic recharge for consumers when paying. Shein, the Asian platform and the main competitor of Temu, has also carried out a similar strategy, with increases in the price of its products.
Now, the company seeks to maintain its business, based mainly on low prices, with the formation of a value chain in the United States. As the company explained, it is actively looking for American producers with which to work and avoid the tariffs that it involves exporting the articles from China.
Temu and Shein have raised prices before the closure of the legal vacuum that allowed their packages to enter the country without paying taxes
A similar strategy is also following Shein. The Asian giant, although it is based in Singapore, works through a network of Chinese suppliers. For a few weeks, however, The company was considering moving the value chain to other Asian countriesand thus avoid the effect of tariffs to which the products from China are subject.
Beyond the elimination of tax exemption, in fact, Both companies also face tariffs resulting from the growing commercial tension between the United States and China. While the president of the country, Donald Trump, pauses the increase in tariffs to all countries of the world until summer, kept them for China.
This has caused all Chinese imports to the United States to be currently subject to a tariff greater than 100%. “This measure is designed to help local merchants reach more customers and expand their businesses,” said Temu in his statement.
