TEMU Stops Shipping to USA After Tariff Loophole Closure

Temu stops shipping to US customers directly from China this month after the US Government shut the “de minimis” tariff loophole, pushing the platform to shift to domestic fulfillment for US orders across the board.

The move, which was announced in early May of 2025, is a reaction to a Trump-era executive order that ended tariff exemptions for shipments worth less than $800 and is intended to support local retailers while keeping consumer prices intact.

By marrying up with US sellers and warehousing stock locally, Temu aims to protect buyers from import charges. However, it loses its rock-bottom-price competitive advantage once costs and supply-chain changes take effect.

This strategic reset reflects larger trends in global e-commerce regulation and may signal similar action by competitors such as Shein.

Why Temu Stops Shipping to US

Temu stops shipping to US customers from China as the federal government withdraws the de minimis rule, under which items worth under $800 entered duty-free. The closure of this rule was one of the provisions of an executive order meant to stem illegal imports and even out the playing field for American merchants. 

In the absence of the exemption, up to 145 percent tariffs on Chinese goods render direct-from-China shipments economically infeasible. As a result, now Temu stops shipping to US addresses straight from its Chinese supply chain and instead shows only items inventoried in US warehouses.

Effect on Consumers and Prices

Temu insists that US consumer prices will not be affected by the switch, promising no additional import charges or delivery fees for American consumers.

Analysts caution, however, that what they call “hidden costs”—more expensive warehousing and domestic transportation—will push sticker costs 40 to 100 percent higher over time. Initial reports suggest that US consumers faced “import charges” of up to 150 percent prior to the policy change. Consumers also risk lower product choice if the US-based stock depletes quicker than Temu can restock it. 

Strategic Pivot: Local Fulfillment Model

To comply, Temu stops shipping to US and shifts to a local fulfillment model, hiring American vendors to stock and ship locally. The model echoes larger competitors’ practices and is intended to relieve customs backlogs due to small-parcel volume spikes.

In line with Temu’s declarations, orders are currently processed exclusively by US-based sellers, while listings for items shipped from China are labeled as “out of stock” to US consumers. The transition also fits a larger trend since Amazon and Shein, among other platforms, adjust to strengthened import regulations.

Market and Competitive Implications

Temu’s action might become a standard for other ultra-low-cost e-tailers who depend on global de minimis exemptions. Shein is subject to the same pressures, and both would see margins compressed as they restore supply chains and warehousing plans

US domestic fulfillment might make delivery times faster, but could decrease Temu’s capacity to price-beat competitors. Retail analysts opine that if prices go up significantly, US consumers may fall back on traditional marketplaces or domestic brands, undermining Temu’s growth curve.

Future Outlook

Looking forward, Temu stops shipping to US from abroad but wagers on local alliances to maintain its low-cost pledge. The company can advocate for tariff reversals or fresh trade deals, but until then, constructing a healthy US distribution network is essential.

Consumers and regulators will be watching to determine whether it can sustain its value proposition in the absence of the de minimis loophole and now that Temu stops shipping to US; success may impact global e-commerce policy and spur similar changes by competitors.

About the Author: Sarah Zimmerman is a seasoned crypto and Web3 news writer passionate about uncovering the latest developments in the digital asset space. With years of hands-on experience covering blockchain innovations, cryptocurrency trends, and decentralized technologies, she strives to deliver insightful and balanced news that empowers her readers. Her work is dedicated to demystifying complex topics and keeping you informed about the ever-evolving world of technology.