U.S. and China Call a Tariff Timeout; Temu Eyes Expansion in Middle East and Beyond
Latest news and analysis on China’s global e-sellers
Here’s our pick for last week’s news:
U.S. and China Call a Tariff Timeout
Temu Eyes Expansion in Middle East and Beyond
SHEIN and Temu Shift Focus to Europe Amid U.S. Sales Slump
Temu Taps Aussie Sellers in Speed Push
TikTok Shop Lands in Brazil
Temu Pullback Triggers Amazon Comeback
Anker's 3D Printer Blitzes $11M on Kickstarter
China's Exports Rise—Except to the U.S.
Outward Bound: China's Investment Leaps 28% in Q1
U.S. and China Call a Tariff Timeout
In a rare sign of easing tensions, Washington and Beijing have agreed to a 90-day tariff truce, with the U.S. slashing duties on most Chinese imports from 145% to 30%, and China lowering levies on American goods from 125% to 10%. The temporary rollback—covering sensitive sectors including fentanyl-linked products—offers exporters a much-needed reprieve as both sides re-enter deeper trade talks. Treasury Secretary Scott Bessent said neither country seeks economic decoupling, while Beijing released a white paper reaffirming its commitment to "mutual respect" and warning that threats "are not the right approach." (Business Today)
Temu Eyes Expansion in Middle East and Beyond
Temu gathered over 1,000 Chinese merchants in Guangzhou last Friday, urging them to shift focus from the U.S. and tap into markets in the Middle East, Asia, and Latin America. While it continues operations in the U.S., Temu ended its fully-managed model as of April 30, now offering only semi-managed options. New listings highlight local warehouses and "no import fees," emphasizing cost-efficiency. Temu also introduced Y2, a model allowing sellers to ship directly from China to the U.S., extending delivery times but lowering storage costs and easing cash flow pressure. Unlike Amazon's FBM, Temu maintains control over pricing. (cyzone.cn)
SHEIN and Temu Shift Focus to Europe Amid U.S. Sales Slump
From April 25 to May 1, both SHEIN and Temu experienced a decline in sales—down 17% and 23%, respectively—reflecting early consumer backlash to price hikes triggered by President Trump's removal of the de minimis tax loophole. To cope with rising tariffs, both platforms raised retail prices. Shifting focus from the U.S., both are now ramping up digital ad spending in Europe. Sensor Tower data shows SHEIN increased ad spend by 35% in France and the UK, while Temu boosted budgets by 40% in France and 20% in the UK. While ad spending sparked more app downloads, daily active user growth remained limited. (LatePost, cyzone.cn)
Temu Taps Aussie Sellers in Speed Push
Temu is opening its marketplace to Australian sellers, allowing them to reach local customers directly—the "local-to-local" model it has already deployed in the U.S., U.K., Germany, France, Japan, and South Korea. By partnering with fulfillment centers in Sydney and Melbourne, Temu is slashing delivery times from 10–15 days to just 4–6, closing the gap with Amazon Prime speeds—without charging for membership. The shift not only sharpens Temu's competitive edge on shipping but reinforces its low-price playbook with faster, localized service. (ebrun)
TikTok Shop Lands in Brazil
TikTok Shop has officially debuted in Brazil, marking a key step in ByteDance's global social commerce push after expanding into the U.S., Mexico, and parts of Europe. For now, the platform is onboarding only local sellers, focusing on beauty, personal care, and electronics. Logistics are handled by third-party partners, with sellers managing warehousing and shipping. Brazil—TikTok's third-largest market with nearly 100 million users—continues to surge: the app led Q1 2025 downloads with over 20 million, outpacing Temu and Mercado Libre, while TikTok's ad reach in the country jumped nearly 20% YoY from early 2023 to early 2024. (ebrun, CHWANG)
Temu Pullback Triggers Amazon Comeback
Following the end of the T86 duty-free policy on May 2, Temu abruptly scrapped its fully-managed China-to-U.S. sales model, shifting to a semi-managed, warehouse-based approach. The move sent a ripple through the e-commerce landscape, triggering a quick rebound for Amazon sellers, some of whom reported rising order volumes just days later—even after raising prices. Many credited Temu's retreat with pushing item prices up by 15% to as high as 377%, driving cost-conscious shoppers back to Amazon. U.S. sellers now see renewed advantages in logistics and fulfillment, as Temu's edge in low-cost, direct shipping narrows. (Cifnews)
Anker's 3D Printer Blitzes $11M on Kickstarter
Anker's eufyMake E1 raked in over $11 million just 12 hours after its Kickstarter debut, signaling strong demand from creators seeking pro-level tools at accessible prices. Priced at $1,699, the E1 bridges high-end consumer and entry-level industrial segments, offering industrial-grade stereoscopic printing in a compact form. A savvy pre-launch campaign—featuring £40 deposits and deep discounts for early backers—helped fuel momentum, with priority shipments set to begin in July. The launch taps into rising appetite in the creator's economy for affordable, precision hardware. (ebrun)
China's Exports Rise—Except to the U.S.
China's trade grew modestly in the first four months of 2025, with exports up 7.5% YoY to RMB 8.39 trillion ($1.16 trillion) and total trade reaching RMB 14.14 trillion ($1.95 trillion), a 2.4% gain, according to customs data. But the April numbers reveal a stark divergence: while overall exports rose 8.1% in dollar terms, shipments to the U.S. plunged 21%. Meanwhile, exports to non-U.S. markets surged 13%, led by a 20.8% jump to ASEAN nations. (China Customs)
Outward Bound: China's Investment Leaps 28% in Q1
China's outbound direct investment jumped 28% YoY in Q1 2025 to $48 billion, signaling a sharp acceleration in overseas expansion as Chinese firms seek growth beyond crowded domestic markets and rising geopolitical headwinds. The surge, reported by the State Administration of Foreign Exchange, highlights Beijing's strategic push to hedge against U.S. tariffs and trade tensions by creating jobs and planting deeper economic roots abroad. In 2024, China's total foreign investment reached $173 billion. (cyzone.cn)