Retailer Temus Daily US users halve to the end of the minimis loophole | Company Business News

* US-China Trading War weighs on the e-commerce platform Temu * De Minimis release has helped Temu to keep the prices of prices low * Temu’s daily US users by 58% in May, according to Sensor Tower at Casey Hall, Arriana Mclymore Shanghai/New York, Daily US users of PDD Holdings’ worldwide’s worldwide Some of the firm firm, firms of the many conditions, are the e-rhetailer amid a trade war in the US China. Temu decided to reduce advertising spending in the US and shift its strategy for fulfilling the order after the White House terminated the practice known as ‘De Minimis’ on May 2-which enabled Chinese companies to send low value packages to the US tariff-free. Temu, together with a quick fashion giant shein, has used the provision for years to drop items directly from suppliers in China to consumers in the US, which keep prices low. Both Temu and Shein have had a sharp decline in customer sales growth and customers since US President Donald Trump announced that the trade rates collected by consultant Bain & Company, but Temu’s trends were worse than his competitor. Rates forced both platforms to raise prices, but Shein was able to increase the amount of money spent per customer compared to a year ago, the data showed, while Temu struggled. Temu did not respond to a request for comment on the fall in US daily users or the wind in the US market. The involvement in Temu dropped significantly after the end of the release, said Morgan Stanley analyst Simeon Gutman in a May note. “Although the tariff environment is uncertain, if the status quo remains for a long period of time, we believe that Temu’s competitive threat will continue to weaken,” Gutman said. Last week, the first quarter of PDD’s earnings did not come from growth estimates and drivers told analysts on a call after earnings that rates had created considerable pressure for its traders. They repeated the former promise of Temu to keep prices stable and work with traders in the regions, referring to a shift to a local fulfillment model announced at the beginning of May. Temu’s previous business model gave traders responsibility for ordering and delivering their products, while the China-based business managed most of the logistics, prices and marketing. Now the traders of Temu can send “individual orders from China to Temu-potted American warehouses, but they will need to address rates and customs costs and paperwork,” according to a note of analysts at HSBC. Temu still handles the fulfillment of orders close to copper, prices and online operations. In the note of last week, HSBC said that Temu’s growth in non-American markets has picked up, with non-American users rising to 90% of its 405 million worldwide monthly active users in the second quarter. “New user -uptick has become fastest in less affluent markets,” analysts wrote. This article was generated from an automated news agency feed without edits to text.