Temu, a Chinese discount shopping website, has halted shipments of goods from China to the US. This change follows President Donald Trump’s decision last month to close a loophole that previously allowed the waiving of duties on small shipments.
According to reports from the Wall Street Journal, a representative from Temu confirmed the cessation of Chinese shipments, stating that these “shifts are part of ongoing adjustments to enhance Temu’s service levels.”
The report notes that recently, Temu has changed its labeling practices, now marking products as “local.”
This implies that items are already imported to the US and stored in domestic warehouses. Typically, these goods fall under De Minimis regulations and tend to be pricier than those shipped directly to consumers.
The White House fact sheet, effective April 2nd, disclosed that Trump has “signed an executive order to abolish tax exemptions” for low-value imports from China. This action is seen as a crucial step in addressing the ongoing health crisis related to the influx of synthetic opioids into the country.
“President Trump has terminated the tax exemption following assurance that the Secretary of Commerce has a functioning system to collect tariff revenues. The de minimis treatment for specified products from China and Hong Kong will be abolished starting at 12:01 AM EDT on May 2, 2025,” stated the fact sheet.
During fiscal 2024, it was noted by the Wall Street Journal that approximately 1.36 billion shipments benefited from the de minimis loophole, a notable increase from 637 million four years ago.
Frances Martel, an International Editor at Breitbart News, previously reported that both Temu and Shein are planning to increase their prices on April 25th in response to this regulatory change.
For years, these companies have gained considerably from the De Minimis exemption, which allows international shipments valued under $800 to sidestep duties and rigorous inspections meant to ensure compliance with US labor laws. Most purchases on these platforms are below that threshold, which means they often avoid obligations that other retailers must pay.
The fact sheet further explained, “Airlines transporting these packages must furnish shipment details to US Customs and Border Protection (CBP), uphold international airline bonds, ensure tariff payments, and transfer duties to CBP according to specified schedules.”
