Low-cost online retailer Temu is ceasing shipments to the United States from China, the company announced on May 2.
On Friday, Temu, which is run by a U.S.-based subsidiary of PPD Holdings, said in a media statement released to The Epoch Times that the platform is transitioning “to a local fulfillment model.”
“Temu’s pricing for U.S. consumers remains unchanged,” the May 2 statement said. “All sales in the U.S. are now handled by locally based sellers, with orders fulfilled from within the country.”
Earlier in April, in light of the pending closure of a trade policy that facilitated the movement of low-cost items from abroad into the United States, Temu said it would likely be hiking prices as soon as April 25.
In the following days, some users said on social media that they saw an import cost equivalent to the tariff charged on imported goods from China. As early as April 29, reports indicated that the site was already promoting only “local” items that were exempt from any tariff charges.
“Temu has been actively recruiting U.S. sellers to join the platform,” the Temu statement said. “The move is designed to help local merchants reach more customers and grow their businesses. This shift is part of Temu’s ongoing adjustments to improve service levels.”
As part of a mass review of global trade policies championed by President Donald Trump, the country ended the so-called de minimis exemption for certain items imported from China and its special administrative region, Hong Kong, on May 2.
Packages valued at or under $800 and shipped by other means will be subject to standard duties, according to the executive order.
The move ended a long-standing policy of not charging import fees on items of what are legally considered trivial value.
In 2015, Congress voted to boost the de minimis threshold from $200 to $800.
That move, according to historical data gathered by Customs and Border Protection, significantly increased the amount of low-value items imported to the United States from China. The number of de minimis imports rose by 470 percent between fiscal year 2013 and fiscal year 2022, according to customs agency data. As of October 2024, the agency was processing about 4 million de minimis shipments per day.
The closure of the de minimis exemption comes as Washington is locked in a tit-for-tat trade tiff with Beijing. Currently, the United States is charging a 145 percent tariff on goods imported from China, and the Chinese communist regime is charging 125 percent on goods exported from the United States.
The Epoch Times previously reported that the elevation of the de minimis threshold coincided with the precipitous decline of traditional retailers in the United States. Aided by the rise of the Internet and mobile application-based shopping, retailers like Temu were able to link U.S. consumers directly with Chinese manufacturers. In exchange for a few weeks of waiting, U.S. consumers could acquire goods at considerably lower cost than they would if they purchased them locally.
For now, Temu continues to undercut most American retailers. For example, the website currently sells a pair of high-capacity batteries designed to work with DeWalt brand power tools for less than $37. At Home Depot, the official DeWalt item manufactured and sold by DeWalt costs about $350.
Shein, a similar company that focuses on selling clothing and accessories, has not announced changes related to the end of the de minimis exemption on its corporate webpage.
“There is a lot of confusion about ‘customs,’ ‘duties,’ or ’tariffs.' To clear up any confusion, here’s how it actually works and why you don’t need to worry about paying more after checking out,” the article says.
“Your checkout total covers everything. The amount you pay at checkout is final—you will not need to pay any additional fees later.”
“Shein remains 100 percent committed to simple, affordable, all-in pricing.”
Shein did not immediately respond to a request for comment from The Epoch Times.
