Big Take Asia

How Amazon Rival Temu Got Sucked Into Trump’s Trade War

21 snips
Feb 18, 2025
In this engaging discussion, Spencer Soper, a seasoned Bloomberg journalist with extensive expertise in e-commerce, dives into the rise of Temu as a major competitor to Amazon. He outlines how Temu has leveraged tariff loopholes to offer rock-bottom prices, drawing in budget-conscious consumers. The conversation also unpacks the ramifications of recent trade policy changes on Temu and similar platforms, highlighting the potential fallout for American shoppers as competition and pricing dynamics shift amidst evolving regulations.
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ANECDOTE

Soper Shops on Temu

  • Spencer Soper, a Bloomberg journalist, regularly shops on Temu.
  • He bought motion-sensing lights and gardening supplies.
INSIGHT

Temu's Rise

  • Temu's rapid growth made it the second biggest online shopping platform in the U.S.
  • 50 million active monthly users highlight its popularity.
INSIGHT

De Minimis Advantage

  • Temu's low prices are largely due to the de minimis rule, a tariff loophole.
  • This rule allows individuals to import goods worth under $800 without paying tariffs.
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