As the United States closes the trade loophole for goods shipped from China, online retailer Temu says it has shifted its supply chain.
Low-cost online retailer Temu is ceasing shipments to the United States from China, the company announced on May 2.
On Friday, Temu, which is run by a U.S.-based subsidiary of PPD Holdings, said in a media statement released to The Epoch Times that the platform is transitioning “to a local fulfillment model.”
“Temu’s pricing for U.S. consumers remains unchanged,” the May 2 statement said. “All sales in the U.S. are now handled by locally based sellers, with orders fulfilled from within the country.”
Earlier in April, in light of the pending closure of a trade policy that facilitated the movement of low-cost items from abroad into the United States, Temu said it would likely be hiking prices as soon as April 25.
In the following days, some users said on social media that they saw an import cost equivalent to the tariff charged on imported goods from China. As early as April 29, reports indicated that the site was already promoting only “local” items that were exempt from any tariff charges.
“Temu has been actively recruiting U.S. sellers to join the platform,” the Temu statement said. “The move is designed to help local merchants reach more customers and grow their businesses. This shift is part of Temu’s ongoing adjustments to improve service levels.”
As part of a mass review of global trade policies championed by President Donald Trump, the country ended the so-called de minimis exemption for certain items imported from China and its special administrative region, Hong Kong, on May 2.
On Friday, as mandated by an executive order, the United States began collecting a duty of either 30 percent of the value of packages at $800 or less shipped through the international postal network or $25 per item. On June 1, that rate will increase to $50 per package.
Packages valued at or under $800 and shipped by other means will be subject to standard duties, according to the executive order.
The move ended a long-standing policy of not charging import fees on items of what are legally considered trivial value.
