Temu Adjusts U.S. Operations as De Minimis Exemption Ends
Temu shifts to U.S. warehouses following the expiration of the de minimis loophole, raising consumer prices on previously low-cost imports from China.

Summary
As of May 2, 2023, Temu has updated its U.S. business model by exclusively showcasing products shipped from local warehouses, following the end of the de minimis rule. The rule had enabled low-value goods from China to be imported duty-free, fostering ultra-low pricing on items like sneakers and kitchen gadgets. However, recent executive orders have imposed tariffs up to 145%, forcing Temu to suspend its aggressive advertising and raise prices slightly, although it claims that local products incur no extra charges. Shein has similarly adjusted its pricing strategy in light of these changes, indicating broader impacts on U.S. consumer costs.
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