Temu Halts Shipments to US Amid New Tariffs

Temu, a major Chinese e-commerce platform, has halted all direct shipments from China to the U.S. following the Trump administration's elimination of the 'de minimis' tariff exemption, which previously allowed goods valued under $800 to enter duty-free. As a result, Temu is now only selling items already located in U.S. warehouses or sourced from U.S.-based sellers, marking a significant shift in its business model. This change is part of a broader crackdown on Chinese platforms like Temu and Shein that had leveraged the loophole to offer ultra-low-priced goods, and comes amid new tariffs and increased scrutiny over illicit goods. Temu has responded by actively recruiting American sellers and expanding its domestic warehousing, but analysts warn this may lead to higher prices for consumers. The Trump administration framed the policy change as a measure to combat deceptive shipping practices and the importation of illicit substances, such as synthetic opioids. While Temu claims the new model will improve delivery times and legal compliance, the long-term impact on its market share and pricing remains uncertain.