Unpacking Temu's cunning trick to bypass Trump's tariffs, but it may not last long
Washington D.C.: Chinese e-commerce giant Temu has swiftly adapted to a major shift in US trade rules by overhauling its shipping strategy. Just hours after the expiration of a key US tariff exemption on Friday, Temu announced that all American sales would now be fulfilled through US-based sellers and local warehouses.
A Temu spokesperson confirmed, “All sales in the US are now handled by locally based sellers, with orders fulfilled from within the country.” The company has been actively recruiting US sellers to join its platform, marking a major pivot from its previous reliance on direct shipments from China.
Temu, along with other Chinese e-commerce platforms like Shein and AliExpress, had long benefited from the de minimis exemption, which allowed goods worth $800 or less to enter the US duty-free, bypassing inspections and paperwork. However, with President Donald Trump’s new tariffs on all Chinese imports, this loophole has effectively closed. As a result, millions of Americans who enjoyed ultra-low-cost products from these platforms may now face higher prices.
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Shipping from a US warehouse does not necessarily mean the products are made in America. In fact, Chinese companies like Temu and Shein have been preparing for this shift for years by stockpiling goods and expanding US warehouse capacity.
Chris Tang, a supply chain expert at UCLA, told CNN that shortages could become a problem if US inventories run out. Temu’s options would then include reordering products, offering substitutes, or raising prices — the latter of which has reportedly already begun.
Meanwhile, Temu customers are feeling the impact. Social media users report many items going out of stock, with some carts shrinking from hundreds of items to just a few. Additional fees now apply to orders under $30, leaving some shoppers frustrated and reconsidering their loyalty.