Temu and Shein already had a backup plan for tariffs

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Something to look forward to this weekend (yes, even on a Monday): Amazon Prime just dropped the cult-favorite horror anthology Channel Zero, hailed as one of the best in the genre—and it’s ready to ruin your sleep in the best way possible.

If Stranger Things and American Horror Story had a creepy little cousin, this would be it.

Here’s something else worth staying up for:

• Temu and Shein are beating the tariffs 🥊
• Unlock Amazon agency secrets with Seller Alliance 🔑
• The next big thing in global sourcing 🌍
• Score Amazon's $250K grants 💰

ECOMMERCE NEWS

The U.S. finally shut down the de minimis loophole, meaning no more tariff-free shipping from China, and yes, that’s a big deal. Especially for Temu and Shein, who’ve been gaining the upper hand over other retailers because of it.

But according to CNBC, experts say—if you think that’s the end of the story, think again.

📦 Here’s what’s going down

• Tariffs hit hard. Temu ended direct shipments from outside the U.S. while Shein hiked prices by up to 50% in categories like toys and beauty.
• Retailers cheer. U.S. lawmakers and local sellers claim the loophole gave Temu and Shein an unfair edge, flooding the market with rock-bottom prices and counterfeit goods.
• BUT they’re not backing down. Experts say both companies saw this coming and had contingency plans in place.

🧭 The great pivot 

Temu and Shein are already shifting their strategy—and fast.

• Local seller push. They’re onboarding more U.S.-based brands to help dodge the new duties and keep shelves stocked.
• Global supply chain shuffle. Shein’s expanding manufacturing hubs in Turkey, Mexico, Brazil, and Vietnam to get closer to end markets and lower costs.
• Prices STILL competitive. Even with thinner margins, experts believe they’ll keep outpricing most U.S. retailers.

💡 What this means for you

Short term? Expect a little sticker shock. Long term? A new opportunity. 

These platforms are hungry for local inventory—and that could mean more visibility and sales for U.S. brands willing to jump in.

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BITES OF THE WEEK

• Paw-some Products: Let this ulti-'mutt' shopping guide from Amazon's Pet Day 2025 give you seller insights on pet lovers' desires.
• Toys in Trouble: Walmart toys made by a U.S.-owned factory in China are troubled by tariffs.
• Electric Solutions: Amazon can fulfill orders in densely populated cities using alternatives like e-vehicles for deliveries.
• USPS Updates: Starting July 13, 2025, there will be a hike in shipping rates for Priority Mail, Ground Advantage, and Parcel Select.

ACTIONABLE ADVICE

3 non-China sourcing hotspots you need to know

If rising tariffs on China-made goods are cutting into your margins, you’re not alone. The smartest move right now? Diversifying your supplier base beyond China. 

Jungle Scout listed 3 manufacturing hubs you can consider:

• India
  • A growing powerhouse for textiles, leather, jewelry, and home goods. 
  • Government incentives through the “Make in India “ program make it an attractive option.
  • 👉 Search tip: Use “Indian manufacturers for Amazon” in supplier directories.
• Vietnam
  • Known for electronics, apparel, footwear, and furniture. 
  • Vietnam boasts low labor costs and solid trade agreements with the U.S.
  • 👉 Search tip: Try “Vietnam factories for private label” and filter for verified exporters.
• Pakistan
  • A rising contender in sports goods, surgical tools, textiles, and leather. 
  • With expanding infrastructure and competitive pricing, it’s a great choice for diversifying.
  • 👉 Search tip: Look for “find suppliers in Pakistan for Amazon” on global B2B platforms.

🧠 Your next move starts here

Moving away from China isn’t just about dodging tariffs—it’s a strategic play. India, Vietnam, and Pakistan are fast becoming strong alternatives, and sellers who act now will be ahead when the next disruption hits.

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• Apply by: May 23, 2025
• Public voting: June 16–27
• Winners announced: July 21, 2025

👤 Eligibility

• Existing Amazon Business customers
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