Temu halts shipments direct from China as de minimis tariff rule ends

Temu, the Chinese bargain retailer, has made significant changes to its U.S. business operations following the implementation of the Trump administration’s new rules on low-value shipments.

As of Friday, Temu has transitioned its website and app to only display products shipped from U.S.-based warehouses. Items previously shipped directly from China are now marked as out of stock.

Temu gained popularity in the U.S. for offering deeply discounted items shipped from China, such as $5 sneakers and $1.50 garlic presses, thanks to the de minimis rule allowing duty-free entry for items worth $800 or less since 2016.

However, the loophole closed on Friday at 12:01 a.m. EDT due to an executive order signed by President Trump, leading to the necessity for Temu to adjust prices, advertising strategies, and product selection to mitigate higher tariffs.

All sales in the U.S. are now managed by local sellers, ensuring fulfillment from within the country without changes to pricing for American shoppers.

Temu has actively recruited U.S. sellers to join the platform, aiming to assist local merchants in expanding their reach and growing their businesses.

With the removal of de minimis, Temu has focused on building its U.S. inventory over the past year, anticipating trade tensions and tariff changes.

Other retailers like Shein have also adjusted prices to include tariffs, while Amazon sellers relying on Chinese manufacturers face challenges with the de minimis rule changes.

The Biden administration, like the Trump administration, has expressed intentions to address the de minimis provision, citing concerns about its impact on American businesses and potential risks related to customs inspections.