Chinese e-commerce platform Temu has announced that it will halt the direct sale of products imported from China to customers in the United States via its own platform. This move came with the end of the duty-free exemption rule applied to low-value packages in the US. Platforms like Temu had been benefiting from the “de minimis” exemption for direct sales to the US.
The US’s new customs tariffs started on Friday, May 2, 2025. Accordingly, the tax exemption called “de minimis” applied to small packages has ended. This situation forced e-commerce retailers, especially those based in China, to make some decisions. Some e-retailers are halting direct sales to customers in the US. Temu is leading among them. Temu is giving up on imports from China to the US. The platform aims to sell products to American consumers only from local sellers.
In line with a decision recently made by US President Donald Trump, the “de minimis” exemption applied to e-commerce packages under $800 from China and Hong Kong was lifted on May 2. Under “de minimis,” products were mostly subject to tariffs of up to 145%. This move negatively impacted global e-commerce. China responded with retaliation!
Temu: Sales Will Be Made by Local Sellers
Platforms like China-based Temu and Singapore-based Shein had been benefiting from the “de minimis” customs exemption for direct sale and shipment of low-value products to the US. The cross-border e-commerce platform Temu, based in China, announced that it will stop direct sales from China to US consumers. Accordingly, Temu announced that sales will now be carried out by “local sellers” and that orders will be fulfilled from within the country. The Chinese e-commerce platform is actively working to onboard US-based companies onto the platform.
In a statement from Temu, it was said, “All sales are now made by sellers located in the US, and orders are fulfilled domestically. This step aims to help local sellers reach more customers and grow their businesses.” In February, Temu had asked Chinese factories to send their products in bulk to American warehouses.
Shein, on the other hand, has not yet made a statement on the issue. Last month, Shein and Temu announced that due to “recent changes in global trade rules and customs tariffs,” their operating costs had increased, and that they would make “price adjustments” as of April 25.
What Will Happen in E-Commerce from China?
Packages sent from China and Hong Kong to the US valued up to $800 are now either subject to a 120% tax or a fixed fee. This fee initially started at $100 and will rise to $200 in June.
In February, Temu had asked Chinese factories to send their products in bulk to American warehouses. This system is called the “semi-warehouse model,” and Temu says it only manages the online marketplace under this model. However, as stocks in the US run out and need to be replenished from China, if import tariffs remain at 145%, prices may increase over time. Fast fashion giant Shein also raised its prices in the US; in some products, this increase exceeded 300%.
Packages entering the US under the de minimis exemption were inspected in the same way as other products and checked for illegal substances. According to officials, most synthetic drugs are already entering the country through the Mexican border. Some experts believe that ending this exemption will have little effect on solving the problem of illegal drugs and will not provide a solution to the challenges faced by American manufacturers.
What is De Minimis?
De minimis” is a Latin term that can be roughly translated into English as “something insignificant.” In this context, it refers to a trade rule enacted by the US Congress in 1938 to prevent the collection of import taxes on only small amounts.
After this threshold was increased several times in the 21st century, it allowed retailers to send packages valued under $800 to US customers without paying taxes or customs fees. According to the US Customs and Border Protection (CBP), shipments under this exemption accounted for more than 90% of all cargo entering the country.
