Topic: Temu

The U.S. has ended the $800 duty-free "de minimis" exemption for international parcels, leading to increased paperwork and higher costs for consumers. A listener reports paying nearly double the price for a Chinese joystick part due to new tariffs and fees. The hosts also warn of Instagram scams where sellers claim to be going out of business to lure buyers into purchasing low-quality goods from China.

The U.S. government has lowered the "de minimis" tariff exemption from $800 to $100, impacting low-value imports from companies like Temu and Shein. The $800 threshold was originally established in 2015 under the Trade Facilitation and Trade Enforcement Act. The change has caused confusion among European postal services, leading some to temporarily suspend shipments to the United States.

French ministers have unveiled a plan to combat the flood of low-cost parcels from Chinese platforms like Temu and Shein, which sent 1.5 billion packages to France last year. The government plans to triple inspections and end customs duty exemptions for small parcels to protect local fashion brands from counterfeit goods and unfair competition. Reports indicate that over 90% of these cheap imports are unsafe or fail to meet environmental standards.

An executive order set for May 2nd will close the "de minimis" loophole that allowed shipments under $800 from China and Hong Kong to enter the U.S. duty-free. This change targets e-commerce giants like Temu and Shein, which ship roughly 4 million packages daily. Proponents of the order argue it will curb the flow of illegal fentanyl and address unfair competition for U.S. textile manufacturers.

TikTok's lawyers highlighted a "carve-out" in the law for e-commerce platforms like Temu, which also utilize Chinese algorithms and collect American user data. The argument suggests that if data security were the sole concern, Congress would not have exempted other major Chinese-controlled platforms. This discrepancy forms the basis of an equal protection argument against the targeted divestiture of TikTok.

Federal regulators are calling for an investigation into Chinese e-commerce sites Temu and Sheen over the sale of potentially dangerous baby products. Meanwhile, Chase Bank issued a warning regarding a viral TikTok "glitch" that was actually a form of check fraud. The hosts suggest these stories are often pushed by domestic competitors like Amazon to discredit foreign platforms.

European regulators are considering ending duty-free exemptions for low-cost goods from Chinese apps like Temu and AliExpress. The hosts discuss reports from Grizzly Research labeling these platforms as "cleverly hidden spyware" and a threat to Western economic interests.