Chinese e-commerce platform Temu has announced it will no longer sell goods directly from China to U.S. customers, shifting instead to U.S.-based sellers amid the closure of a long-criticized customs loophole.

Temu will now rely on locally based sellers in the United States to fulfill all customer orders, the company confirmed, effectively ending direct imports from China that once fueled its rapid rise in the U.S. market.

The change follows a regulatory crackdown on the "de minimis" exemption—a rule that previously allowed retailers to ship packages under $800 directly to U.S. consumers without paying import taxes or duties.

Temu and its rival Shein had heavily benefited from the loophole, using it to flood the U.S. market with ultra-low-cost goods. However, mounting bipartisan criticism led to the rule's revision, with both President Donald Trump and former President Joe Biden denouncing it for undercutting American businesses and enabling illegal imports.

“All sales in the U.S. are now handled by locally based sellers, with orders fulfilled from within the country,” Temu stated, adding that the shift aims to support local merchants and reduce logistical costs.

The company said it has been actively recruiting American firms to its platform in preparation for the transition.

The end of the de minimis advantage marks a significant shift for Chinese online retailers that had built global market share through low prices and fast international shipping. According to U.S. Customs and Border Protection, shipments under the exemption accounted for over 90% of all cargo entering the country.

Both Shein and Temu have recently acknowledged increased operating expenses due to changing global trade rules and tariffs, with price adjustments taking effect from April 25.

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