Chinese e-commerce giant Temu announced Friday it will no longer ship goods directly from China to the United States, opting instead to fulfill U.S. orders from domestic warehouses. The announcement came on the same day the Trump administration officially shut down a controversial trade exemption that allowed Chinese-made products under $800 to enter the U.S. duty-free.
President Donald Trump has long criticized the loophole, calling it a “big scam” that gave Chinese sellers an unfair advantage over American small businesses. The termination of the exemption marks a key step in the administration’s effort to protect domestic manufacturing and rebalance trade.
Temu had previously warned customers that prices would rise after the loophole’s closure. Some items reportedly doubled in cost as the platform began adding import charges. However, on Friday, a Temu spokesperson stated that U.S. pricing “remains unchanged” due to the company’s shift to local fulfillment.
“Temu has been actively recruiting U.S. sellers to join the platform,” the spokesperson said. “The move is designed to help local merchants reach more customers and grow their businesses.”
The closed loophole, known as the de minimis exemption, had been widely used to avoid import duties on low-cost foreign goods. Critics said it enabled a flood of poorly regulated, often unsafe products into the American market. Kim Glas, president of the National Council of Textile Organizations, praised the decision, saying it helps level the playing field for U.S. manufacturers.
While opponents of the policy change warn it may lead to higher consumer prices, supporters argue that ending the loophole will restore fair competition and support American jobs.
