Days after a key trade loophole closed, e-commerce platform Temu has overhauled its business model by halting shipments of Chinese-made goods to U.S. customers.
Instead of offering American consumers a plethora of discounted products from China, the company is now selling goods shipped from warehouses based in the U.S.
The online marketplace will be able to keep product prices low and also avoid the costs associated with outsourcing goods. Temu says those items are not subject to custom fees and import charges, a tax collected by a country’s custom authorities.
The move comes after the U.S. placed sharp tariffs on imports from China, and just days after the expiration of the de minimis exemption, an exclusion that allowed for parcels valued under $800 to come into the U.S. duty free.
President Donald Trump initially closed the de minimis loophole in February, but postponed enforcement after packages began piling up without time to plan and execute the policy change, according to Reuters.
“Temu’s pricing for U.S. consumers remains unchanged as the platform transitions to a local fulfillment model,” the company said in a statement to USA TODAY. “All sales in the U.S. are now handled by locally based sellers, with orders fulfilled from within the country.”
Here’s what shoppers should know.
What Temu’s ‘local warehouse’ banner means
American customers will be able to avoid custom fees and import charges by shopping from the “Local Warehouse” section of Temu.
All of the products with the “Local Warehouse” tag are shipped “from within your country or region,” therefore no import charges or extra delivery charges will be applied upon purchase, according to a banner seen on Temu’s website.
The company did not immediately respond to USA TODAY’s request for clarification about whether product availability might be impacted by U.S. manufacturer capability.
Temu has also “been actively recruiting U.S. sellers to join the platform” in order to help local merchants reach more customers and grow their businesses.
Temu and competitor Shein warned customers about potential price hikes in late April weeks after tariff wars began between the U.S. and other countries, most notably China.
Contributing: Kinsey Crowley, USA TODAY
This article originally appeared on USA TODAY: Temu stops shipments from China to US, shifts to American warehouses
