Temu Halts Shipments from China to the U.S. After Tariff Exemption Ends, Shifts to Local Distribution

• Temu halts US-bound shipments
• Will operate with local warehouses only
• Tariffs force strategic shift

Temu, the popular low-cost e-commerce platform based in China, has radically changed its sales strategy for the US market.

The company has decided to stop shipping products directly from China to the United States, marking a major departure from its original business model.

The decision follows the elimination of the “de minimis” tariff exemption, which allowed low-value imports (under $800) to enter the US without being taxed.

This exemption, used for years by platforms like Temu to keep prices low in the US, expired on May 2 as part of a policy pushed by the Trump administration.

Temu halts China shipments after exemption ends

According to Temu, orders placed by US customers will now be fulfilled exclusively from local warehouses, eliminating import charges that had previously inflated final prices.

“No import charges for any item from the local warehouse and no extra fees upon delivery,” reads a new notice now visible on Temu’s US website.

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The site now features only products labeled as “Local Warehouse,” meaning inventory is housed within US territory.

With this change, Temu aims to soften the blow of tariffs that can reach up to 145% on products made in China, especially after the exemption was lifted.

New pricing and focus on local sellers

In April, the company had already warned customers that tariffs would impact pricing and that changes would begin on April 25, 2025.

“Due to recent changes in global trade regulations and tariffs, our operational costs have increased,” Temu stated in a message to consumers.

In response, Temu began actively recruiting US-based sellers to join its platform, in an effort to maintain its presence in one of the world’s most lucrative markets.

“This initiative is designed to help local merchants reach more customers and grow their businesses,” the company told CBS MoneyWatch.

Temu seeks to remain competitive in the US

This pivot also aims to preserve the seamless shopping experience Temu is known for, but without the tariff surcharges that had started to discourage purchases.

Many consumers had complained that tariffs doubled the original price of certain items, diminishing the appeal of the platform’s deals.

With this new strategy, Temu hopes to stabilize its relationship with US shoppers by keeping prices competitive despite rising logistics costs.

Former President Donald Trump defended the end of the de minimis exemption in late April, calling it “a massive scam against our country.”

Trump defends end of tariff exemption

Trump argued that the policy was harming small American businesses by allowing foreign platforms to flood the market with cheap goods without paying appropriate tariffs.

Eliminating this tax break reflects a protectionist shift by the US government, aiming to bolster the competitiveness of domestic retailers.

Temu is among the most high-profile cases affected, as the platform had become a consumer favorite due to its low prices and vast product catalog.

Now, its success will largely depend on its ability to operate as a national marketplace, competing with giants like Amazon and Walmart.

In the meantime, the company is working to retain its user base.

It is focusing on a shopping experience free from surprises or hidden fees at checkout, according to CBS News.

Temu also emphasizes that the shift will not affect the quality or availability of its most popular items, although some price adjustments will be unavoidable.

The platform, which revolutionized online commerce with its direct-export model from China, must now prove it can stay relevant under the new rules of the game.