Temu Halts Direct Shipments from China as Tariff Exemption Ends

Temu, a popular e-commerce platform known for offering ultra-cheap, China-shipped goods, has abruptly stopped allowing U.S. customers to purchase items shipped directly from China, instead switching to a local distribution model where products are fulfilled from U.S. warehouses. This drastic change was triggered by the end of the de minimis tariff exemption and the imposition of new, steep tariffs on low-value Chinese imports by the Trump administration. In response, Temu raised prices, initially displayed large import charges for direct-from-China items, and then removed such listings altogether, resulting in reduced product variety and higher prices for American shoppers. The shift has caused confusion among suppliers and customers, with Temu now recruiting U.S. sellers to join its platform and promoting products as "local" to signal they are exempt from the new tariffs. Other Chinese-founded platforms like Shein have responded differently, with Shein still including direct-from-China items—though Temu’s rapid operational changes highlight the immediate impact of U.S. trade policy shifts on e-commerce. The changes have disrupted Temu's traditional business model and led to widespread uncertainty in the marketplace.