PDD-owned budget online retailer Temu and its rival Shein have relied on de minimis to maintain their rock bottom prices.
Shares of Temu parent PDD Holdings plunged after President Donald Trump announced new tariffs on the country's top three trading partners.
Lawmakers have zeroed in on de minimis in recent years, arguing it gives Chinese companies an unfair advantage by allowing them to bypass tariffs.de minimis packages are "subject to minimal documentation and inspection," raising product safety concerns. Trade organizations and advocacy groups have also pushed Trump to curb de minimis shipments because they argue that it has allowed shipments of fentanyl to enter the U.S.
That may not be enough to soften the blow of the removal of de minimis. In a note to clients on Sunday, analysts at Citi estimated Temu's local warehouse program remains a small portion of its overall business.
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