Chinese discount retailer Temu has dramatically overhauled its U.S. operations following the formal repeal of the de minimis rule and the introduction of a 145% tariff on Chinese goods by President Donald Trump, a policy shift that is already reshaping the landscape of online shopping in America and pushing prices higher.

As the new rules took effect early Friday, Temu stripped its app and website of nearly all China-shipped products, which once accounted for the bulk of its ultra-low-cost offerings. Instead, the platform now displays only items shipped from U.S.-based warehouses, while Chinese-sourced goods are marked “out of stock.”

Temu, a subsidiary of Chinese e-commerce giant PDD Holdings, previously relied on the de minimis trade provision, a 2016-era rule that allowed goods worth $800 or less to enter the U.S. duty-free, to ship millions of low-cost items directly from Chinese factories to American doorsteps. It enabled prices like $3 earbuds, $1.50 garlic presses, and $5 sneakers, often cheaper than what domestic sellers could offer.

But with the end of the loophole, coupled with Trump’s newly imposed 145% tariff on Chinese imports, Temu has been forced to pivot. The retailer is not only raising prices and cutting back on aggressive advertising, but it has now completely transitioned to a model reliant on domestic fulfillment and U.S.-based sellers.

“Temu has been actively recruiting U.S. sellers to join the platform,” a company spokesperson told CNBC, adding that all sales are now fulfilled “from within the country.” The company insists prices remain “unchanged,” but that claim has been undercut by soaring backend costs and widespread reports of elevated product pricing following the shift.

Before the move, American shoppers trying to purchase China-based products from Temu were presented with import fees ranging from 130% to 150%, sometimes higher than the product itself. These charges, tied directly to Trump’s tariff, effectively doubled or tripled the final cost of many items, rendering Temu’s trademark affordability unsustainable under the new regime.

To mitigate the damage, Temu now highlights U.S.-based goods with labels such as “no import charges” and “no extra charges upon delivery”, hoping to reassure buyers who may have been turned off by surprise fees.

The broader impact is already reverberating across e-commerce platforms.

Amazon, the U.S. e-commerce giant and a competitor to Temu through its Amazon Haul section, announced last week that prices would be going up due to Trump’s tariffs. Haul, which focused on shipping inexpensive Chinese goods (typically under $20) directly to American consumers, was built around the same de minimis framework that Temu used to thrive.

Amazon initially began displaying the tariff-related costs for Haul products at checkout to improve transparency. But according to sources familiar with the matter, Trump intervened directly, reportedly objecting to Amazon “weaponizing the tariffs” against his administration. The company was forced to remove the price breakdown and reverse the feature after a behind-the-scenes clash with the White House.

The resulting confusion and policy reversals have frustrated sellers and customers. Multiple third-party merchants on Amazon said they’ve already seen reduced margins and increased returns due to unexpected fees and pricing shifts. Others are now scrambling to find domestic partners or warehouse space in the U.S. to replicate Temu’s pivot and stay compliant.

Shein, another China-rooted online retailer known for dirt-cheap clothing, has also moved to include tariff costs in its pricing structure. The app now shows a banner at checkout that reads, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”

But the removal of the de minimis rule, which some lawmakers have called “a customs blindspot”, is more than a tariff story. It is expected to significantly increase the cost of goods nationwide, particularly for categories like electronics, clothing, household accessories, and toys — most of which come from China. This comes at a time when inflation remains a top concern for many American households.

Retail analysts say that price hikes will be unavoidable. Chinese suppliers either have to absorb the tariffs (which many can’t), or shift fulfillment to the U.S. (which adds overhead and warehousing costs). That cost increase, inevitably, will be passed down to consumers.

Temu’s rapid shift was months in the making. The company had begun building out U.S. warehousing and logistics infrastructure in 2023, anticipating that Trump or any future administration could clamp down on de minimis. But experts say even with that head start, the company faces a long road toward replicating the scale and efficiency of its China-to-doorstep model within U.S. borders.

Meanwhile, Trump’s second-term trade policy continues to raise alarms in corporate circles, where firms have already warned of broader supply chain disruptions, especially for small businesses that rely on Chinese manufacturing. Trade groups have cautioned that the tariffs will hurt U.S. competitiveness.

The move to kill de minimis was rooted in bipartisan concerns about national security, illicit imports, and fair competition. Lawmakers and customs officials had argued that millions of low-value packages entering the U.S. each day were evading inspection, making it easier for fentanyl, counterfeit goods, and undeclared electronics to slip through the cracks.

While President Biden had also floated the idea of restricting de minimis, it was Trump who executed the repeal, branding it as part of his effort to put “America First” and clamp down on “unfair trade practices” by China.

With one of its key advantages erased, Temu’s future in the U.S. is now under threat. While the company has taken early steps to adapt, it is not clear whether a platform born on the back of ultra-cheap, China-shipped goods can remain viable under present circumstances – without de minimis.

The Central Bank of Nigeria (CBN) has reported that the value of its gold reserves rose significantly to N2.77 trillion as of December 31, 2024, up from N1.28 trillion at the end of 2023, more than doubling within a year.

This development, which forms part of the apex bank’s newly released audited financial statements for the 2024 fiscal year, underscores not only a rebound in the valuation of Nigeria’s reserve assets but also marks a notable shift in the CBN’s asset management strategy amid volatile global economic conditions.

Crucially, the report comes at a time when the Central Bank is declaring its first annual profit in years, signaling a rare moment of financial stability after prolonged periods of operational deficits and controversial fiscal maneuvers. According to the financial statement, the CBN recorded a profit of N103.8 billion for the 2024 financial year, a marked turnaround from a loss of N498.2 billion reported in 2023. The bank also reported a comprehensive income of N1.67 trillion for the year under review, reversing a negative figure of N832 billion in the previous year.

Although the volume of the CBN’s gold holdings remained unchanged at 687,402 troy ounces, the dramatic increase in valuation was fueled by a sharp rise in global gold prices. The bank priced its gold bullion at $2,624.39 per ounce as of December 2024, up from $2,062.98 per ounce at the end of 2023. This surge in price mirrored trends seen across global markets, where gold was in high demand among central banks and institutional investors.

The rising value of gold reserves coincides with a broader global trend that saw central banks increase their gold purchases in 2024 in response to inflation fears, currency volatility, and geopolitical uncertainty. According to the World Gold Council’s Gold Demand Trends report for 2024, total global demand for gold, including over-the-counter investments, rose by one percent to 4,974 tons, setting a new all-time high. For the third consecutive year, central banks accounted for over 1,000 tons of this demand, reinforcing gold’s status as a safe-haven asset.

The London Bullion Market Association (LBMA) reported that the average gold price in 2024 stood at $2,386 per ounce, representing a 23% increase over the previous year. In the fourth quarter alone, gold prices averaged $2,663 per ounce, sharply boosting the market value of gold holdings in central bank vaults worldwide. The total market value of global gold demand reached $382 billion in 2024, driven by high prices and sustained buying interest across sectors ranging from monetary authorities to private investors.

Against this backdrop, the CBN’s gold holdings now account for approximately 5.1% of Nigeria’s total external reserves, up from 4.3% in 2023. The bank’s decision to increase reliance on gold, even without boosting physical holdings, is a strategic move to hedge against the weakening of fiat currencies, particularly the US dollar, and to enhance the stability of Nigeria’s reserve portfolio. This form of diversification is increasingly being adopted by monetary authorities globally in response to shifts in global monetary policy, ongoing conflicts, and slowing global growth.

In addition to the increase in gold value, Nigeria’s total external reserves rose sharply to N54.73 trillion by the end of 2024, up from N29.98 trillion recorded in 2023. This expansion is not just a numerical gain; it reflects the impact of both asset revaluation due to currency movements and a series of deliberate actions by the apex bank to improve its foreign asset position.

As of December 31, 2024, Nigeria’s net foreign exchange reserves had climbed to $23.11 billion — the highest level in over three years. This represents a major recovery from $3.99 billion in 2023, $8.19 billion in 2022, and $14.59 billion in 2021. The growth in net reserves followed a strategic decision by the CBN to reduce its exposure to short-term foreign exchange obligations, particularly currency swaps and forward contracts, which had previously exerted significant pressure on the net reserve position.

Alongside improved asset management, the bank also benefitted from increased foreign exchange inflows from non-oil sources, helping to ease Nigeria’s historical reliance on crude oil exports. Non-oil export receipts and diaspora remittances played a growing role in shoring up the reserve base, as the CBN implemented policies aimed at enhancing inflows and curbing speculative demand for foreign exchange in the domestic market.

Gross external reserves also recorded an uptick, rising to $40.19 billion at the end of 2024, compared to $33.22 billion in the previous year. This increase, while supported by revaluation gains, also reflected efforts by the CBN to improve liquidity conditions and build confidence in the foreign exchange market.

The audited financial report offers a rare glimpse into a central bank that has faced intense scrutiny in recent years, especially under the leadership of its previous governor. During that period, the CBN was often accused of monetary policy distortions, opacity in foreign exchange management, and overreliance on interventionist programs that stretched its balance sheet.

Now under a new leadership, the 2024 financials appear to signal a turn toward fiscal discipline and more conventional central banking practices. The bank’s ability to report a profit, grow its reserves, and participate meaningfully in global asset revaluation trends is likely to boost investor confidence and restore credibility to Nigeria’s monetary policy framework.

Global forecasts suggest that central banks will continue to increase their gold holdings in 2025 amid lingering uncertainty. The CBN’s current positioning appears consistent with global best practices. By holding on to its gold stockpile and benefiting from its appreciation in value, the apex bank has not only improved its financial standing but also strengthened Nigeria’s buffer against external shocks.