Temu’s package can be seen in front of the screen with the Temu logo. (Photo by Nikos Pekiaridis/Nurphoto via Getty Images)
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Chinese online retailer Temu is surfing more products with apps that can ship from US warehouses following President Donald Trump’s decision to cancel a popular tax loophole.
The almost-first century exception known as De Minimis is used by many e-commerce companies to send items under $800 to US tax-free. Trump on Saturday suspended exemptions as part of new tariffs, including an additional 10% tax on Chinese products.
De Minimis is a explosive Temu and Shein in the US by allowing businesses to avoid taxes on low-value shipments and maintain rock bottom prices on everything from shoes and clothing to furniture and electronics It helped drive growth.
With the tariff exemption gone, Temu has significantly increased promotions for sellers who have inventory in US warehouses rather than items shipped directly from China. A scan of the list in Temu’s “Lightning Deals” section shows that it is almost entirely dominated by products with a green “local” badge.
By promoting local inventory, Temu’s products not only arrive at shopper’s doorsteps quickly, but also reduce their reliance on sellers who ship directly from China. Although the products are stored in US warehouses, many local lists say that the items are sold by Chinese-based companies.
Temu representatives did not respond to requests for comment.
Temu is launching more products shipped from the app’s local warehouses in the wake of the popular trade loophole suspension.
Temu’s US-based product promotion brings it to more direct competition Amazon,, ebay and Wal -Martand we also sign up to sellers who ship products overseas to warehouses in China. Last year, Amazon saw dramatic growth in the US when it launched its own budget storefront called Temu and Shein’s Haul.
Temu is owned by an online retailer in China PDD holdingIn March, it began to install sellers with stock in US warehouses. By July, around 20% of Temu’s US sales came from these sellers, not China-based merchants, according to e-commerce market research firm Marketplace Pulse.
Temu, Shein and other Chinese e-commerce companies are trying to minimize the level of service disruption as they face new, more stringent customs requirements. They were thrown into further confusion Tuesday night when the US post office suddenly announced it would halt inbound packages from China and Hong Kong “until further notice.”
Less than 12 hours later, the USPS reversed the decision and resumed accepting packages from those regions. The agency also said it will work with the US Customs and Border Protection to “implement an efficient collection mechanism for new China’s tariffs to ensure minimal disruption in package supply.”
This uncertainty created volatility in PDD’s stock price, falling 6% on Monday, up 8% on Tuesday and down more than 3% on Wednesday.
Critics of De Minimis’ provisions have created an influx of packages that offer unfair benefits to Chinese e-commerce companies, “that is subject to minimal documentation and inspection,” and are counterfeit or unsafe He says he raised concerns about the product.
Others advocate for maintaining the De Minimis exemption, saying that the removal would pay customs officials and lead to increased government costs.
“At some point, 3 million of these items have accumulated a day, and customs can do their best, but they are not equipped,” says Hugo Pakula, CEO of supply chain compliance firm Tru Identity. He said. “They have to do 10 times more screenings this week than last week.”
CBP says it handled a minimum shipment of over 1.3 billion in 2024. A 2023 report from the House Selection Committee on the Communist Party of China found that Temu and Shein could be “responsible” for more than 30% of De Minimis’ shipments to the US.
The scene also courts our buyers and sellers. The company opened distribution centers in states, including Illinois and California in 2022, and last year it opened a supply chain hub in Seattle. The company said it will allow the Seattle Hub to “localize and support faster delivery times for American consumers.”
Watch: Amazon Haul accepts Temu
