Chinese e-commerce giant Temu has nuclear option as President Trump cuts off tariff de minimus loophole

Temu should pursue an acquisition of Kohl's or Dollar General in the US, or partner with Shein on a deal involving the former retailer, according to Brittain Ladd, a supply chain consultant and former Amazon executive.

Ladd was commenting as Temu confirmed it was no longer shipping goods from China to US customers due to the removal of the de minimis loophole, and 145% tariffs. It has shifted to labelling everything as “local,” meaning items that had already been imported to the States in bulk and are sitting in American warehouses.

The bestsellers on Temu now are mostly bulky furniture and household appliances, replacing the ultracheap smaller items it is known for, such as hairpins and charging cables.

It does business with over 6,000 suppliers in China. Tariffs are having a severe impact on suppliers and manufacturers in China, and on companies that depend on shipments from China - like Temu.

In a LinkedIn post, Ladd said: "In 2024, I anticipated that if Trump won the Presidential election, tariffs would likely return. Two companies - Shein and Temu - would be severely impacted. I decided to come up with a possible solution. In my opinion, I believe the best option for Temu to pursue is to acquire Dollar General, who has a market cap of $19 billion. Temu is owned by the Chinese company PDD Holdings, which has a market cap of $158 billion in US dollars."

Temu could present the acquisition as an investment in the US, Ladd argued. It could also commit to making additional investments in the USA. In return, it could negotiate a waiver on de minimis shipments and tariffs.

Another option is acquiring Kohl's, which has a market cap of $800 million. For comparison, Kohl’s was worth $23 billion in 2001.

Ladd added: "An interesting idea for Temu to pursue is enticing Shein to partner with them on an acquisition of Kohl’s. (Again, in exchange for acquiring Kohl’s and investing in the US, the pair could negotiate a waiver on tariffs.) Kohl’s would offer Shein a unique opportunity for selling its in-demand garments to customers online and in Kohl’s retail stores.”

“Shein and Temu could leverage their relationship with over 10,000 suppliers to curate an assortment of handbags, shoes, home furnishings, furniture, and many other items at prices lower than any other retailer. I think it would be fascinating to see what they could create."

2025 RTIH INNOVATION AWARDS

E-commerce will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.