Temu and Shein at the moment they get rid, the Big Tech breathe

After the storm, some calm. At least, temporary. The feared tariffs from the United States to imports from China products They threatened The world economy, but in recent days we have seen the Government of Donald Trump has paused these measures. In fact, he has just done the same with the measures that especially affected Temu and Shein.

What happened. Donald Trump has applied A remarkable cut to tariffs that apply to small value packages that arrive from China and Hong Kong to the United States. Thus, the new tariffs on those packages of up to $ 800 of value go from 120% to 54%. The reduction is important, but tariffs continue to impose remarkable rates for this type of products.

Temu and Shein breathe (a little). Chinese online trade giants such as Temu or Shein have been benefiting from The exemption called “Minimis” To be able to send low -cost products directly to consumers in the United States without paying import rates. That rule It was canceled by the Trump administration a few days ago, and that caused A domino effect which affected the Big Tech of the US.

WOMAN FOR META AND GOOGLE. The decision also relaxes the pressure on Meta and Google, which were great beneficiaries of this commercial exchange. Temu and Shein They sold big in the US Thanks to the exemption of Minimis, but to achieve it they spent true fortunes in advertising that hired giants such as Meta and Google. By deactivating that exemption, advertising income immediately They diverse. These ads are expected to reactivate that advertising expense in the Big Tech.

But be careful. Although the situation improves for Temu and Shein, the pause has a small print. Trump changed the minimis rule for a flat rate of $ 100 per package with value of less than $ 800, and that flat rate would amount to $ 200 in June. These rates are maintained despite the 90 -day truce agreement for other tariffs and make it sell directly from China to consumers (very) expensive for Temu or Shein.

Temu dodges the measures selling from the US. To avoid the application of these tariffs as far as possible, Temu began to fill gigantic warehouses in the United States of their products to be able to send their “locally” products before they were affected by tariffs. That measure is temporary, because those warehouses will end up needing to fill again and it will be then when they will face these new tariffs.

Plan B: No direct sale. Precisely at that time is when Temu has an escape with this announcement of the Trump administration. With the direct sale of products to consumers punished for tariffs and flat rates, the solution is not to sell directly, but fill their warehouses with large orders (no packages below $ 800) and then serve consumers locally. In this way “only” the new reduced tariffs (30%) apply and not those of 54% that affect these value packages of less than $ 800. It is certainly a respite for businesses like Temu, which have the United States as their large sales market.

Trump continues to back. The month of April we lived a unique burst of ads in which the US decided to raise their tariffs to China and the Asian giant responded with equivalent climbs. The situation on April 11 reached absurd ends: US tariffs to Chinese imports reached 145%, and China’s to US products to 125%. Neither seemed to move token, but Trump ended up yielding Any was he who started hostilities. Yesterday both countries announced a 115% reduction in these reciprocal tariffs, which has been a real relief for the world economy.

Image | Alain G. Shumbusho

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