Temu has stopped shipping goods made in China to American customers, switching overnight to a home-grown supply chain after Washington closed a tariff loophole that had kept its prices low.
The change follows the May 2 end of the “de minimis” rule, which had waived import duties on parcels worth up to $800.
Earlier this year, the Trump administration moved to end that rule, saying it had harmed U.S. businesses. Without the exemption, products sourced from China now face duties that Temu says can reach 145%, wiping out the online Chinese seller’s price edge.
In a statement to CBS MoneyWatch, the company said its prices “remain unchanged as the platform transitions to a local fulfillment model.” The statement added that all U.S. orders are now supplied by sellers based in the country and shipped from domestic warehouses.
A visit to Temu’s U.S. site on Friday showed only items tagged “local,” signaling that they are stocked in American warehouses and, therefore, not subject to the higher import taxes.
The company said it is “actively recruiting U.S. sellers to join the platform,” a shift from its earlier practice of relying on China-based merchants who mailed goods directly to American buyers at rock-bottom rates.
“The move is designed to help local merchants reach more customers and grow their businesses,” Temu said.
Former president Donald Trump had called the old $800 threshold “a big scam going on against our country, against really small businesses” at an April 30 event, two days before the exemption lapsed.
The new banner on the Temu site reads, “No import charges for all local warehouse items and no extra charges upon delivery. Items marked with the ‘Local Warehouse’ tag are shipped from within your country or region. This means you do not need to pay any import taxes or customs fees,”.
The overhaul comes after U.S. customers complained that tariff surcharges, sometimes double the value of the merchandise, were deterring them from checking out.
Temu had warned users in April that higher costs were on the horizon. “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,” the company told shoppers in a message posted that month.
By pivoting to local stock, Temu aims to keep sticker prices level while sidestepping the new duties that now apply to China-sourced parcels.
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