Temu Stops China Shipments to the U.S. After Tariff Hike
This comes after the loophole it used to keep prices low was shut down.
Temu's entire shopping model has always been built around flash sales and ultra-cheap goods shipped straight from China. It’s what helped the e-commerce app skyrocket in popularity across the U.S., offering everything from $5 sneakers to $2 kitchen gadgets.
But with the latest tariff war heating up, that bargain-hunting experience is hitting a major roadblock. In case you don't know, the U.S. slapped a massive 145% tariff on goods imported from China, thanks to President Trump’s push to tighten trade rules.
While this sounded like a nightmare for companies like Temu and its fast-fashion rival Shein, both had a handy workaround—the “de minimis” rule. This rule allowed any package valued at $800 or less to enter the U.S. duty-free, which was a perfect loophole for Chinese retailers selling cheap goods.
Oluwaseun Bamisile
That loophole, however, officially closed at 12:01 a.m. on Friday, May 2, following an executive order signed by Trump in April. As a result, Temu’s low prices started cracking under pressure, with U.S. shoppers suddenly seeing 130% to 150% “import charges” added at checkout. Not exactly the bargain people signed up for.
Rather than completely upend its model, Temu is pivoting fast. The company announced it will stop shipping goods directly from China to the U.S. altogether. Instead, it’s flipping to a local model, only listing products that can be fulfilled by U.S.-based sellers and warehouses. Goods from China are now labelled as “out of stock.”
In a statement, Temu said the move is meant to “help local merchants reach more customers” and keep prices stable despite the tariff shakeup. The company has reportedly been ramping up its recruitment of U.S. sellers over the past year, likely sensing that this day was coming.
Shein, on the other hand, hasn’t made any big pivots yet but has quietly raised prices and added a note at checkout saying tariffs are now baked into the final price. Both companies are facing tough choices: either overhaul their global supply chains or risk losing the price advantage that made them popular in the first place.
For now, Temu seems to be betting big on a U.S.-only strategy. However, whether that can truly replicate the low-cost magic of its China-based model in the U.S. remains to be seen.
Emmanuel Oyedeji
