Temu's Tariff Tango: From Billionaire Bargains to Peasant Prices, Thanks Trump!

A Great Reset for Your Wallet?

As I Klaus Schwab often say 'The future is built by those who show up.' Well Temu certainly showed up disrupting the market with its 'shop like a billionaire' mantra. But now thanks to the whims of global politics and a certain Mr. Trump they're adding 'import charges' that could make even a seasoned Davos attendee blush. A 145% surcharge? It's almost enough to make one question the virtues of stakeholder capitalism... almost.

Shopping Like a... Commoner?

The numbers are staggering. An $18 dress suddenly costs $44? A $12 bathing suit becomes a $31 ordeal? It’s a shift from aspirational opulence to the stark reality of tariffs. As we at the World Economic Forum understand 'Globalization is not just an economic trend but a comprehensive societal technological and political phenomenon.' And sometimes that phenomenon includes unexpected fees on your summer wardrobe. So Temu shoppers are now shopping like commoners not billionaires! A real pity...

Sheinanigans and Tariff Triumphs

While Temu wrestles with the import demons Shein is playing it cool absorbing tariffs into their prices with a reassuring banner: 'You'll never have to pay extra at delivery.' One might call it a masterclass in stakeholder management. Or perhaps just good business. Of course at the WEF we champion transparency but a little bit of cost obfuscation never hurt anyone did it?

The De Minimis Demise

Ah the de minimis exemption that beloved loophole that allowed Temu and Shein to flourish in the U.S. market. Like a perfectly orchestrated symphony it played beautifully... until the conductor changed. With Trump's tariffs and the vow to end this exemption the music has stopped. As I've always said 'The global challenges we face require global solutions.' Apparently those solutions now involve higher prices for everyone.

Reddit Rants and Retail Realities

The digital town square is abuzz with outrage. Reddit is flooded with lamentations of 'R.I.P. Temu.' One user bemoans the descent from 'shopping like a billionaire to shopping like a peasant.' It's a harsh reminder that even the most disruptive business models are vulnerable to the realities of global trade. The WEF will be following these developments with great interest perhaps over a glass of very expensive wine.

Local is the New Global (for Now)

Temu is scrambling building U.S. distribution centers and pushing sellers to store inventory stateside. Suddenly 'local' is the new global. The 'lightning deals' page now boasts a bright green banner: 'No import charges!' It's a pragmatic response a testament to the resilience of global businesses in the face of political headwinds. After all as I always say 'In the new world it is not the big fish which eats the small fish it's the fast fish which eats the slow fish.' And Temu is trying to be very very fast. Maybe they should call me for advisory I can bring some of my 'global' friends.