Chinese e-commerce giant Temu has stopped shipping products directly from China to US consumers after the Trump administration eliminated a key trade loophole, the company confirmed on Friday.
The company halted its China-direct shipping model following the end of the “de minimis” exemption, which previously allowed packages valued under $800 to enter the US without duties or tariffs.
A Temu spokesperson said the company had transitioned to a model where locally-based sellers handle all US sales. Products shipping directly from China would now be labeled as out of stock.
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The change marks a fundamental shift for Temu, which built its business offering heavily discounted products, including $5 sneakers and $1.50 garlic presses, by exploiting the tariff exemption.
“All sales in the US are now handled by locally based sellers, with orders fulfilled from within the country,” a Temu spokesperson said.
The elimination of the de minimis provision follows Trump administration actions aimed at addressing trade imbalances with China. According to administration data, approximately 1.36 billion packages entered the US under this exemption in fiscal year 2024, with the majority originating from China.
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Temu said it would increase prices by 130-150% for products previously covered under the exemption. Customers reported that their shopping carts, which contained hundreds of items before the policy change, were reduced to just one or two items after the change took effect.
The company said it has been recruiting US sellers and building inventory in domestic warehouses for the past year to prepare for this outcome. Similar efforts have been undertaken by competitor Shein.
“Temu has been actively recruiting US sellers to join the platform,” the spokesperson said. “The move is designed to help local merchants reach more customers and grow their businesses.”
Industry analysts expect continued pressure on Chinese e-commerce platforms selling in the US market as a result of the policy change. The shift could make previously affordable products significantly more expensive for budget-conscious American consumers.
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