Temu, the popular budget shopping app known for low-cost items shipped from China, has made a major change: it will no longer ship products directly from China to U.S. customers. This sudden shift comes after the U.S. government officially shut down the “de minimis” trade loophole, which had allowed cheap, untaxed imports to flood into the country.
What Was the De Minimis Loophole?
The de minimis rule let companies ship items under $800 into the U.S. without paying import duties. For years, e-commerce platforms like Temu, Shein, and AliExpress used this rule to send small packages directly from Chinese sellers to American customers — without extra taxes or customs delays.
In 2024 alone, more than 1.36 billion packages entered the U.S. using this loophole, doubling from just four years earlier. But concerns grew about the loophole being misused for untaxed goods, counterfeit items, and illegal imports.
New U.S. Tariffs Now Apply to Temu and Other Chinese Retailers
In May 2025, the U.S. canceled this policy for Chinese imports. Now, all items — even if they’re cheap — face tariffs as high as 145%. The decision is part of a broader move to protect American jobs and reduce the country’s reliance on cheap Chinese products.
How Temu Is Responding: Domestic Warehouses and U.S. Sellers
To adapt quickly, Temu has stopped all direct shipping from China to the United States. Instead, it’s now working with U.S.-based merchants who ship products from domestic warehouses. This helps Temu avoid the new import taxes but could change the company’s business model significantly.
Temu claims it will keep prices affordable for American customers, but industry experts warn that product costs could rise by over 100%, depending on how new import fees and taxes are handled.
Impact on Online Shopping and Global E-Commerce
This policy shift affects not just Temu but the entire online retail industry. Other Chinese platforms like Shein are also adjusting pricing, shipping methods, and stock levels. American retailers may benefit from the change, but consumers might see higher prices and fewer product choices.
Holiday seasons and large shopping events could also be affected, as many low-cost goods are no longer shipped as cheaply or quickly as before.
Conclusion: What U.S. Shoppers Need to Know
The end of Temu’s China-to-U.S. shipping model is a turning point for global e-commerce. With the de minimis loophole closed, low-cost international shopping may become less accessible to U.S. consumers.
Expect longer shipping times, higher prices, and more products fulfilled from within the U.S. Temu is evolving, but this marks a major shift in how affordable goods are delivered — and how U.S.-China trade policies shape your online shopping experience.
