Temu Halts Direct Shipments from China to the U.S.

Chinese e-commerce platform Temu, owned by PDD Holdings, has halted shipments of goods from its warehouses in China to American consumers. The decision follows changes in U.S. trade regulations: as of May 2, 2025, President Donald Trump’s executive order eliminates the ‘de minimis’ exemption that previously allowed duty-free imports of goods valued under $800.

Under the new rules, all parcels from China are subject to a 120% tariff, which could rise to 145% or a fixed $100 per package starting in June. As a result, Temu was forced to drastically shift its logistics model and now focuses on selling items already stored in U.S. warehouses.

American users of the platform now only see products marked as ‘local’, indicating they are stocked within the country. However, the available inventory has significantly shrunk, and price increases may follow. This change could impact Temu’s competitiveness compared to rivals like Amazon and Walmart.

The company has begun onboarding local suppliers and restructuring its logistics network to retain market share. Meanwhile, Temu continues expanding in Europe, where tariffs on Chinese imports remain relatively low. By leveraging local warehouses and maintaining an aggressive pricing strategy, Temu hopes to retain customer trust and adapt to the new trade environment.