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Over the past decade, cross-border e-commerce has grown at an unprecedented pace, transforming how consumers shop and how brands expand globally. Platforms like Temu and Shein have thrived by tapping into international supply chains, delivering affordable products directly to consumers worldwide. However, this massive growth has also caught the attention of regulators, and the U.S. has started tightening its trade rules to keep pace with the surge.

One of the most significant changes shaking the industry is the end of the de minimis exemption, which once allowed low-value shipments to enter the U.S. duty-free. This policy shift has created a dual impact: consumers face a shock as prices rise and bargains become harder to find, while e-commerce brands feel the setback of higher costs and reduced competitiveness in the American market.

Take Temu as an example. Known for offering ultra-low-cost goods shipped directly from overseas warehouses, the company now faces a steeper challenge in balancing affordability with compliance. The removal of the exemption forces Temu and similar platforms to rethink their logistics, pricing, and market strategies, or risk losing ground in one of their most important markets.

Yet, while these challenges are undeniable, they also push brands toward transformation. The path forward lies in building smarter supply chains — from diversifying sourcing locations and optimizing shipping routes to leveraging technology for better inventory planning. By rethinking operations, global e-commerce players can offset rising costs and continue serving consumers effectively.

In the end, the outlook is balanced. The road ahead will not be without struggles, but adaptation is possible. The end of duty-free days may mark the close of one chapter in global e-commerce, but it could also spark innovation that defines the next.