Chinese e-commerce platform Temu has stopped shipping goods directly from China to US customers, following the expiration of a tariff exemption that previously allowed low-value items to enter the country duty-free, CBS News reports.
The change marks a significant shift in Temu’s business strategy, as the company now relies on US-based sellers and domestic warehouses to fulfill orders.
The policy shift came after the May 2 end of the “de minimis” exemption, which allowed goods valued under $800 to bypass import duties. The exemption had been widely used by e-commerce platforms like Temu to offer low-cost Chinese products to American consumers. However, recent policy changes by the Trump administration have closed that loophole, subjecting such imports to tariffs that could reach as high as 145%.
Temu confirmed the transition in a statement, saying that its US platform now exclusively features items stocked in local warehouses.
“Temu’s pricing for US consumers remains unchanged as the platform transitions to a local fulfillment model. All sales in the US are now handled by locally based sellers,” the company noted.
The change is reflected on the US version of Temu’s website, where only items labeled “Local Warehouse” are available for purchase. A banner explains to customers that these products will not incur additional import taxes or customs fees.
“No import charges for all local warehouse items and no extra charges upon delivery,” the notice reads.
Temu also announced it is actively recruiting American merchants to join its platform.
“The move is designed to help local merchants reach more customers and grow their businesses,” the company stated.
Previously, Temu’s appeal stemmed from its ability to offer ultra-low prices on Chinese-made products shipped directly to consumers. But in April, the company had warned customers of upcoming price changes tied to rising tariffs, saying:
“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.”
President Donald Trump criticized the de minimis exemption shortly before it ended, calling it “a big scam going on against our country, against really small businesses.”
