Temu Shifts Gears After Tariff Changes: What Shoppers Can Expect

Temu, the popular ultra-low-cost online marketplace, is making a major shift in how it serves U.S. customers. Following recent changes to U.S. trade rules, Temu will no longer rely on duty-free imports from China. Instead, the platform is transitioning to a domestic fulfillment model, with warehouses and distribution centers set up within the United States.

This move comes after the U.S. government tightened restrictions on the “de minimis” trade loophole, which previously allowed companies like Temu and Shien to ship inexpensive goods directly from China to American consumers without paying import duties. The loophole had been key to Temu’s rock-bottom pricing, but with its closure, the cost of doing business has gone up.

By pivoting to a U.S.-based distribution system, Temu hopes to reduce shipping times and improve customer experience, but analysts warn that these improvements may come with a price. Experts predict a noticeable increase in product costs, as domestic warehousing, labor, and logistics are typically more expensive than direct international shipping.

Despite its popularity, Temu continues to face mounting global scrutiny over allegations of forced labor within its supply chain. Both U.S. and U.K. officials are actively investigating claims that the company’s low-cost goods may be tied to exploitative labor practices.

Temu has also started hiring U.S.-based logistics and marketplace specialists, including former Amazon and Walmart employees, to build out its domestic infrastructure. This move is designed to help Temu maintain its competitive edge while adapting to new trade realities.