Temu has stopped shipping products directly from China to the U.S., signaling a major shift in its low-cost business model. This comes in response to a new executive order by President Trump ending a key tariff exemption.
Key Facts:
- Temu halted all direct shipments from China; only U.S. warehouse inventory is now available.
- The change follows Trump’s April order eliminating the “de minimis” tariff loophole for imports under $800.
- New tariffs range from 10% to 145%, hitting Chinese goods hardest.
- Temu is recruiting U.S. merchants and suppliers to supply its products.
- Prices on the platform have already started rising, with $2 shirts now listed at $4 or higher.
The Rest of The Story:
Temu, the fast-growing Chinese discount retailer, has ceased shipping products from China to American customers.
Shoppers now see many listings marked “out of stock” unless the items are housed in U.S. warehouses.
This drastic shift follows the implementation of President Trump’s executive order ending the de minimis tariff exemption.
The rule had allowed goods under \$800 to enter the U.S. duty-free, a loophole Temu and similar companies had relied on to offer rock-bottom prices.
Customs officials began enforcing the new tariffs in late April.
Temu has begun recruiting American sellers to keep its marketplace stocked, while prices on the app have already increased.
Shirts that once sold for \$2 are now priced at \$4, and \$5 shoes now cost \$9.50.
Despite this, analysts say Temu’s pricing edge over competitors may remain for now due to its business model and agile production strategies.
The de minimis loophole allowed China and companies like Shein and Temu to take advantage of American workers.
I commend President Trump for closing it.
— Tom Cotton (@TomCottonAR) April 7, 2025
Commentary:
Temu and Shein flooded the U.S. market with cheap, disposable products made under questionable conditions overseas.
While consumers chasing low prices welcomed the deals, the real cost was paid by American workers and businesses.
For years, companies like Temu took advantage of China’s lax labor laws and near-zero oversight.
They exploited every loophole available, especially the de minimis rule, to dodge tariffs and undercut U.S. competitors who followed the rules and paid fair wages.
By evading taxes and flooding the market, Temu harmed American manufacturing.
Domestic brands simply couldn’t match \$2 shirts and \$5 shoes made in Chinese factories where labor conditions are murky at best and exploitative at worst.
Trump’s decision to close the de minimis loophole corrected a long-standing imbalance.
For once, foreign firms don’t get to walk in the front door of the American marketplace without paying the same entry fee as everyone else.
Now Temu is scrambling to pivot, trying to source domestically or raise prices.
If that means fewer ultra-cheap, low-quality imports, then good.
America doesn’t need more throwaway goods at the cost of its own economic backbone.
Some consumers may complain about rising prices, but they should consider what they’re really paying for: better working standards, stronger American businesses, and a fairer playing field.
The Bottom Line:
Temu’s retreat from Chinese shipping marks a seismic shift in how discount foreign retailers operate in the U.S.
The Trump administration’s tariff changes hit hard, and Temu is already adapting by sourcing locally and raising prices.
While some may miss the rock-bottom prices, this change could help revive fair competition for American businesses.
In the long run, ending special treatment for exploitative foreign firms is a win for U.S. workers and producers.
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