Popular e-commerce platform Temu has halted shipments of all products from China to the US because of President Donald Trump’s tariffs.
The Chinese company stopped shipping into America on Friday as the Trump administration closed the ‘de minimis’ loophole, which allowed China-made items worth up to $800 to enter without import fees.
Temu’s sales in the US are now handled by domestic sellers and fulfilled ‘from within the country’ and pricing for US shoppers ‘remains unchanged as the platform transitions to a local fulfillment model’, according to a spokesperson.
The company ‘has been actively recruiting US sellers to join the platform’ and the move is part of its initiative to ‘help local merchants reach more customers’, the spokesperson told Axios.
Temu and other foreign online retailers like Shein had amassed a huge customer base because the loophole allowed them to sell products at low prices to Americans.
But Trump called the exemption a ‘big scam’ that benefited foreign e-commerce at the expense of US small businesses, and signed an executive order doing away with it.
Temu shoppers recently found that many items from China were no longer on the site, and only those shipped from within the US were available.
Some have said that closing the loophole will hurt American consumers who will see prices increase.
Meanwhile, critics of the loophole said it hurt US-based companies like fast fashion brand Forever 21, which is closing all of its stores and attributed the decision in part due to competition from Temu, Shein and Amazon.
National Council of Textile Organizations president Kim Glas praised the Trump administration’s move as ‘an important step forward to help rebalance the playing field for American manufacturers’.
‘We are grateful to President Trump and his administration for closing the destructive de minimis loophole that has allowed unsafe and illegal Chinese goods – including goods made with forced labor – to flood the US market duty-free and largely unchecked for years,’ stated Glas.
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