Temu, a Chinese bargain retailer known for its low-cost products shipped directly from China, has stopped shipping these products to the U.S. in response to tariffs imposed by the Trump administration. The end of the de minimis rule, which allowed items under $800 to be imported duty-free, and new 145% tariffs on Chinese goods have forced Temu to adjust its business model. As a result, Temu now only offers products shipped from U.S.-based warehouses, effectively shifting its focus to local sellers. This change aims to maintain stable pricing for American consumers and to support local merchants by recruiting them to the platform. Prior to this shift, consumers faced significant import charges that often exceeded the cost of the items themselves, leading to a substantial increase in the overall price of orders.

Temu has altered its operations in the U.S. due to the expiration of the de minimis rule and new tariffs, which previously allowed low-cost goods to enter the country duty-free. This change was a result of an executive order by President Trump, aimed at addressing health concerns related to illicit opioid flows.

The de minimis rule, which permitted duty-free import of items valued at $800 or less, expired on May 2, 2025, prompting Temu to restructure its logistics and no longer ship products directly from China to the U.S. Instead, the company now labels such items as out of stock.

Due to the new tariffs, Temu has suspended its online advertising campaigns and adapted its product offerings to avoid the increased levies, resulting in a strategic pivot to sourcing from U.S. warehouses and sellers.

The company assures that prices for U.S. shoppers remain unchanged despite these adjustments, as it actively recruits American sellers to join its platform, thereby facilitating local merchants in reaching wider audiences.

Shoppers previously experienced import charges ranging from 130% to 150% on Temu products shipped from China, which often made the total purchase cost exceed the initial item price significantly.

Temu emphasizes that products sourced from within the U.S. come with no additional import or delivery charges, aiming to provide a more seamless purchasing experience for American consumers.

Shein, another retailer benefiting from the de minimis rule, has also raised prices and informed customers that tariffs are now included in the pricing to avoid extra delivery charges.

Chinese bargain retailer Temu is making a big change to their business in the United States.

Amid the Trump administration’s tariffs, including new rules on low-value shipments, the company has changed its website and app to only display listings for products that ship from U.S.-based warehouses.

Items shipped directly from China are now labeled as out of stock, via CNBC.

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Temu became a sensation in America for its heavily discounted items shipped direct from China, including items like $5 sneakers. The prices came because of the de minimis rule, allowing items worth $800 or less to enter the country duty-free since 2016.

The loophole expired Friday (May 2) at 12:01 a.m. ET as a result of an executive order signed by President Donald Trump in April.

The end of de minimis, as well as Trump’s new 145% tariffs on China, forced Temu to raise prices, suspend its online advertising push and now adjust the selection of goods available to American shoppers to circumvent higher levies, via a CNBC report.

A Temu spokesperson confirmed to CNBC that all sales in the U.S. are now handled by local sellers and said they are fulfilled “from within the country.”

Temu said pricing for U.S. shoppers “remains unchanged.”

“Temu has been actively recruiting U.S. sellers to join the platform,” the spokesperson said.

“The move is designed to help local merchants reach more customers and grow their businesses.”

Prior to the change, shoppers who attempted to purchase Temu products shipped from China were confronted with “import charges” of between 130% and 150%, often costing more than the individual item and more than doubling the price of many orders.

Temu says that local products have “no import charges” and “no extra charges upon delivery.”

Shein, which has also benefited from the loophole, moved to raise prices last week, adding a banner at checkout that says, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”

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