Temu just raised its price, Trump reversed and restored the $800 tax exemption

It changes three times a day, and people crossing the border are already numb.

Previously, USPS suspended and then resumed accepting parcels from China within one day, and now even the $800 tax-free policy is going to be restored. What will happen next?

Trump announces temporary restoration of small tax exemption policy

According to the latest news from the White House, Trump announced in an executive order that duty-free treatment for small packages from China will continue to be effective until "an adequate system is established to fully and promptly process and collect tariff revenues."

However, Trump did not specify the effective period of the latest executive order, which means that the tax exemption for small packages below US$800 is only a temporary restoration and will most likely be canceled again in the future.

According to industry insiders, since the number of packages entering the United States through the "minimum limit" policy is too huge every day, the sudden cancellation of this policy will inevitably bring huge pressure to customs. In this case, temporarily postponing the implementation of the executive order to cancel the "minimum limit" has become an inevitable result.

Another person familiar with the matter revealed that the U.S. Customs and Border Protection has held an expedited meeting with logistics professionals to discuss the backlog of packages at customs and future solutions.

According to the prediction of professional organizations, the US government should take transitional measures in the short term to ensure that the customs processing capacity does not collapse completely. It will take about half a year to a year for adjustment, after which the T86 customs clearance window will be completely closed.

Not only the US Customs, but also the temporary restoration of the small package duty-free policy has provided a very valuable buffer period for the majority of sellers. Taking this opportunity, sellers can adjust the current logistics plan as soon as possible and consider the future layout of overseas warehouses in the United States.

Faced with such fast-paced changes, many sellers say they can’t bear it, and what to do next is a difficult problem facing many sellers.

Some sellers said that they wanted to take advantage of this policy window period to urgently send a batch of goods, but they were afraid that something unexpected would happen while the goods were still on the way . As a result, it is not right to ship the goods, nor is it right not to ship the goods.

However, a group of decisive sellers have already "taken advantage of the chaos" to send out a batch of goods, and said that fortune and wealth are sought in danger, so this opportunity should be seized if possible.

"I sent out a batch of goods as soon as I saw the news, and I expect to save tens of thousands of yuan."

"We were originally planning to move to Europe, but now it seems that we can continue to operate in the U.S. market for a while."

Although such operations do provide an opportunity to make some money, in the face of future uncertainties, sellers should still prepare in advance, enhance their ability to resist risks, and avoid having their operations disrupted by the next policy adjustment.

Temu raised its prices overnight, are they going to go back down?

In addition to Amazon sellers, platforms such as Temu and SHEIN can be said to be the victims most severely affected by tariffs.

Recently, a group of Temu sellers reported that the prices displayed on the Temu front desk suddenly increased to varying degrees, ranging from a dozen US dollars to as high as several dozen US dollars.

Not only sellers have noticed the price increase, but many American consumers have also keenly noticed the price changes.

"I saw a 4-piece bed sheet set for $34.28 last night, but today it's up to $47.64. It's gone up too much."

"I ordered a desk lamp, and now the price has increased by $20. It's too much."

"I picked out a few clothes last night, but fell asleep without paying. This morning I saw that the prices had all gone up by $10-30."

Faced with the sudden price increase, many consumers said that they can no longer afford Temu.

Affected by this, the sales of many sellers also dropped sharply. One of the sellers speculated that the sudden price increase at Temu’s front desk was probably related to the adjustment of T86 customs clearance policy.

However, just when the sellers were still immersed in the grief of the sharp drop in sales, they suddenly received news that Trump announced an $800 tax exemption policy.

As Trump announced in his executive order that duty-free treatment for small packages from China will continue to be effective, Temu’s reason for raising product prices will no longer be valid. Should the prices be lowered back?

According to the current feedback from Temu sellers, the prices displayed on the front end of the platform have not been adjusted yet, and it is uncertain whether Temu will reduce prices later.

Some logistics companies have begun to restore prices

Unlike platforms, logistics providers tend to act more quickly.

Because the Trump administration previously canceled the $800 minimum tax-free amount policy, resulting in an increase in customs clearance fees, major logistics companies had no choice but to issue price increase announcements and transfer the costs to sellers.

Now, the Trump administration has announced the restoration of the $800 minimum tax-free amount policy, and some logistics companies have taken action to cancel the previously added charging policies.

Yanwen Logistics issued an announcement stating:

Due to the new executive order issued by the US President, the customs clearance of duty-free items below 800 US dollars will be temporarily resumed. At present, our company is waiting for the opening of the US T86 customs declaration system and has made preparations for the switch as soon as possible.

Therefore, our company will resume tax exemption for Yanwen Express registered products to the United States from February 8th. At the same time, our company will resume the processing fee before February 6th from February 8th.

4PX and Yuntu also announced that they will cancel customs clearance fees and the 30% pre-collected tax rate, and support tax refunds to sellers for packages in the warehouse.

All in all, this news is a major benefit to the majority of sellers, and sellers should seize this policy window and take action as soon as possible.

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