The US government may take action to suppress it! Is Temu's low-price strategy coming to an end?

As we all know, there is a tariff de minimis rule in the United States, which states that if imported goods valued at $800 or less are shipped to individual consumers, the product is exempt from tariffs.

However, a bill submitted to the US Congress last week pointed out the "loopholes" in this rule and hoped to amend it. An analyst in Hangzhou said that if this bill is passed, it will significantly increase the operating costs of domestic cross-border e-commerce companies and make them lose their previous cost advantages.

"If cross-border platforms such as Temu also need to pay tariffs in the future, the extra costs will likely be indirectly transferred to American consumers through price increases," the analyst added.

Earlier this month, Amazon announced it was excluding Temu from its competitive pricing system, saying the company did not meet its fair pricing standards.

The US giant said its qualification standards ensure it does not compare prices with "questionable" platforms, including those that may host counterfeit products.

In response to the news, Temu said it has a "strict review policy for the listing and sale of products that infringe on third-party trademarks, copyrights or patents."

As we all know, Temu's eye-popping low price is the reason why it is so popular in Europe and America. Since its launch, Temu has quickly become popular on social networks of all sizes, and has long been at the top of the download charts for both iOS and Android.

However, many experts question how long this practice of grabbing traffic at low prices can last.

According to the sponsors of the U.S. Tariff Limits Revision Act, the bill is intended not only to impose necessary trade tariffs but also to combat the flow of illegal goods.

Despite facing various suppressions, the CEO of a Beijing e-commerce consulting company still believes that even if this bill is really passed, it will not have a substantial impact on platforms such as Temu in the short term.

Because China's supply chain is already very mature, sellers from countries like Vietnam and India will not be able to replace domestic sellers in the short term.

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