Facing a major regulatory shake-up, Chinese discount e-commerce platform Temu has pivoted its U.S. operations by focusing exclusively on domestic fulfillment. The move comes as sweeping changes to U.S. trade rules—specifically the removal of the de minimis loophole—take effect, reshaping how low-cost imports from China enter the country.
Temu, owned by Chinese tech giant PDD Holdings, previously built its popularity on ultra-cheap items shipped directly from China. But as of Friday, all product listings on Temu’s U.S. platform are now fulfilled from warehouses within the country, with former Chinese-sourced items marked “out of stock.”
The shift follows an executive order signed by former President Donald Trump, eliminating the de minimis rule that had allowed items under $800 to enter the U.S. duty-free. Temu, along with fast-fashion rival Shein, had capitalized on the rule to offer rock-bottom prices on a massive scale.
Now, that advantage is gone.
The change was swift. Temu has paused its aggressive digital ad campaigns and restructured its supply chain for the U.S. market. Customers attempting to buy Chinese-shipped products were recently met with import duties as high as 150%, often exceeding the product’s original price.
A Temu spokesperson told CNBC that the platform now relies solely on U.S.-based sellers, adding that prices “remain unchanged” for American consumers. “Temu has been actively recruiting U.S. sellers to join the platform,” the spokesperson said, signaling a shift toward supporting local merchants to expand market reach.
To reassure shoppers, the platform now highlights that items fulfilled in the U.S. come with “no import charges” and “no extra charges upon delivery.”
Temu isn’t the only company recalibrating. Shein recently adjusted prices and now includes a notice at checkout that tariffs are built into listed prices. Meanwhile, Amazon, which launched a Temu competitor called “Amazon Haul,” considered including tariff disclosures but ultimately reversed course following discussions with the White House.
As the U.S. takes a harder stance on Chinese imports and trade tensions rise, these policy shifts may permanently change the playbook for global e-commerce giants. While domestic sourcing offers a workaround for now, it remains to be seen whether the ultra-low-cost model Temu pioneered can remain viable under a new regulatory era.
