By The overnight collapse of Temu’s signature shipping model reveals the fragility of ultra-low-cost e-commerce, with analysts predicting 15-25% order declines as the platform loses its pricing edge. The 2025 Customs Modernization Act removed the de minimis exemption for Section 301 goods – predominantly Chinese imports.
Behind the Scenes:
- Temu’s contingency plans: Rerouting through Vietnam warehouses
- Hidden costs: New 17.5% average tariff on electronics
- Competitor moves: Shein already operates U.S. fulfillment centers
Consumer Impact:
“My 12 wireless earbuds now show16 at checkout,” complained Texas shopper Maria G. “At that price, I’ll just buy from Amazon.”