Temu, the Chinese e-commerce giant, has stopped direct shipments to US customers following the US government’s closure of the “de minimis” trade loophole, which allowed tariff-free imports under $800. The shift to a US-based fulfilment model could raise prices, impacting consumers and the e-commerce landscape.
The US ended the de minimis exemption, a 1938 law, to curb illicit shipments and protect domestic retailers from unfair competition from low-cost imports. Temu, known for ultra-cheap goods, now relies on US-based merchants for sales, abandoning direct China-to-US shipping. While Temu claims prices will remain stable, experts warn that import fees and taxes could double product costs, significantly affecting affordability.
The policy shift disrupts platforms dependent on the de minimis rule, forcing pricing and supply chains to reevaluate. As companies adapt to stricter trade regulations, potential price hikes and product shortages loom by late 2025. The change aims to level the playing field for American businesses but may challenge consumer access to budget-friendly goods.
Temu’s halt of direct China shipments to the US, prompted by the closure of the de minimis loophole, signals a transformative shift in e-commerce. As Temu adopts a local fulfilment model, rising costs and supply chain changes loom. Consumers and businesses must brace for a new era of international trade dynamics.
