Temu, a Chinese e-commerce platform, has ceased shipping products directly from China to the United States and will now fulfill all U.S. orders from local warehouses. This change follows the Trump administration's closure of a loophole allowing Chinese goods valued under $800 to enter the U.S. without import fees, which President Trump criticized as harmful to American businesses. As a result, Temu has adjusted its pricing strategy, imposing import charges on U.S. customers that significantly increased the cost of items shipped from China. Additionally, Temu has begun recruiting U.S. sellers to join its platform, aiming to support local businesses and maintain competitive pricing. The closure of the loophole has sparked debate, with some arguing it will increase consumer costs while others see it as a positive move to support domestic manufacturers against the influx of duty-free Chinese goods.

Temu has stopped direct shipping from China to U.S. customers and will now utilize local warehouses for order fulfillment, following the closure of a loophole that previously allowed low-cost Chinese goods to enter the U.S. without import fees.

The Trump administration ended the de minimis exemption, which President Trump labeled a 'big scam,' claiming it disadvantaged American small businesses by allowing duty-free entry of Chinese products priced under $800.

In response to the loophole's closure, Temu began adding import charges for U.S. customers purchasing items from China, sometimes more than doubling the purchase price.

With many Chinese products removed from its site, Temu has assured that pricing remains unchanged for U.S. consumers as it transitions to a local fulfillment model, focusing on recruiting U.S. sellers to enhance its marketplace.

The exemption's end has led to concerns over potential price increases for U.S. consumers and challenges for businesses that relied on the loophole, while some American textile trade groups welcome the change as a boost for domestic manufacturing.

Trade groups like the National Council of Textile Organizations criticized the loophole for allowing 'unsafe and illegal' Chinese goods to flood the U.S. market, seeing the closure as a rebalance for American manufacturers.

This policy shift underscores ongoing tensions in U.S.-China trade relations and reflects broader efforts to protect U.S. economic interests and support local businesses amidst global commerce challenges.