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Temu and Shein's strategy to beat Trump's tariffs

Feb 06, 2025
Two Chinese e-commerce companies, Temu and Shein, are changing their strategies to deal with new tariffs from President Trump. They used to send goods worth less than $800 to the U.S. duty-free, but now they have to find new ways to get their products to American customers. Temu and Shein are using U.S. warehouses to store their items, so they don't have to pay as much in tariffs. This also helps them deliver products faster. Even though they have fewer items in stock, they can still compete with Amazon's quick delivery times. Shein is opening more distribution centers in the U.S. to speed up delivery and reduce their reliance on shipments from China. This helps them avoid delays caused by changing customs rules. However, Shein has faced challenges like concerns over labor practices, which have delayed their plans to go public on the stock market. The U.S. Postal Service briefly stopped accepting packages from China, causing problems for companies like Temu and Amazon, but they soon started accepting them again. This shows how Chinese e-commerce companies have to be ready for sudden changes in rules. Despite these challenges, experts believe that Temu and Shein will still be successful because of their strong business models. Both companies are working hard to adjust to the new tariffs and customs rules. While they may face some obstacles, they are taking steps to make sure they can keep selling products to customers in the U.S. Even though things are changing, Temu and Shein are ready to adapt and keep growing.

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