Shoppers in the United States have recently noticed a sharp rise in prices on Temu, the popular e-commerce platform. The main reason? The US government has scrapped a key import loophole for China and Hong Kong, leading to sky-high tariffs on products—most of which were originally shipped from Chinese sellers.
As a result, Temu has been forced to change how it operates, shifting towards a local fulfilment model and changing its product sourcing strategies.
What Changed for Temu?
Until now, Temu’s products were mostly shipped directly from China. However, after new tariffs and import rules came into effect, the company told The Sun US that it is now working with local sellers in the US.
A Temu spokesperson confirmed, “All sales in the U.S. are now handled by locally based sellers, with orders fulfilled from within the country.”
This means that Temu has stopped selling Chinese-imported items in the US, and many products have now been marked as out of stock on the platform.
To fill the gap, the company is actively recruiting US sellers, aiming to help local businesses grow while still offering a wide variety of products to customers.
Are Prices Really the Same?
While Temu insists that prices for American consumers remain “unchanged,” shoppers have reported big increases in their bills.
For example:
- A $34 corduroy cargo jacket ended up costing $83 after adding a $46.50 import charge and $2.50 sales tax, as reported by USA Today.
- A $119 double bed folding mattress jumped to $273 after a $146 import fee and $8 sales tax were added.
Clearly, import fees and new tariffs are making a big difference at checkout.
The End of the ‘De Minimis’ Loophole
Previously, under the de minimis exemption, imported goods priced below $800 could enter the US without any duty. This rule allowed platforms like Temu and Shein to ship goods cheaply, bypassing most import charges.
However, this loophole was closed on Friday, affecting all packages from China and Hong Kong—no matter the value. The rule was shut down by an executive order from former President Donald Trump, which called out “deceptive shipping practices” and concerns about illicit products in small parcels.
According to US Customs and Border Patrol, nearly 92% of packages entering the US fall under this exemption. Now, even packages worth under $800 will face tariffs and extra fees, starting in June.
Shein Also Affected
Temu isn’t alone. Chinese e-commerce rival Shein has also confirmed it will raise prices from April 25, due to the same 145% tariffs that are affecting all Chinese-origin shipments.
Temu Is Changing Its Business Model
In response to the changing trade environment, Temu is adapting its platform. The company is now trying to be “more like Amazon,” offering a wider variety of products from local US sellers and aiming to speed up delivery times.
Temu also made significant changes to its website and app, which could affect long-time users in the US. Though full details were not disclosed, the move is part of a strategy to become more competitive in a tougher market.
The US government’s move to end the de minimis rule for Chinese imports has changed the way platforms like Temu do business. With higher import tariffs in place, customers are now seeing big jumps in product prices. To adapt, Temu is focusing on US-based sellers and local fulfilment, trying to offer affordable options while staying compliant with trade laws. Whether this shift will help maintain their popularity in the long run remains to be seen—but for now, shoppers should expect changes in pricing and product availability on the platform.
