Temu, a Chinese-based e-commerce retailer, has updated its business operations in response to the recent expiration of the de minimis tariff exemption on low-value goods imported into the United States. The exemption, which previously allowed products valued at $800 or less to enter the U.S. duty-free, expired on May 2, 2025.
In light of this change, Temu has halted shipments of Chinese-made products to the U.S. and shifted to a local fulfillment model. The company stated that while its prices for U.S. consumers remain unchanged, all sales are now handled by U.S.-based sellers, with goods fulfilled from domestic warehouses to avoid the high tariffs on Chinese goods, which can reach up to 145%.
A message on the U.S. version of Temu’s website now highlights products marked as “local,” which are stored in domestic warehouses and exempt from the new tariff rules. These products are not subject to the additional import taxes or customs fees that had previously impacted items shipped directly from China.
Temu has also begun recruiting U.S. sellers to join the platform, aiming to expand the reach of local merchants. The company emphasized that this move would help U.S. businesses grow by providing greater access to customers.
Earlier this year, former President Donald Trump criticized the tariff exemption, calling it a “big scam” against small businesses. The administration’s decision to end the exemption has led to increased operating costs for many businesses, including Temu, which had previously relied on Chinese suppliers to offer low-cost products to American consumers. In April, Temu warned customers of impending price increases due to changes in global trade rules and tariffs.
The new changes come as U.S. consumers have expressed concerns about the impact of tariff surcharges, which in some cases were higher than the value of the goods themselves. The platform’s adjustment to local fulfillment aims to mitigate these costs and improve the shopping experience for U.S. customers.
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