Buying goods at bargain prices on Temu has been a delight for many customers since the e-commerce giant launched in the US in 2022, but recent trade policies implemented by President Donald Trump have put this relationship at great risk.
In late April, Temu raised prices and added “import duties” that were sometimes higher than the cost of the products. Customers balked, traffic to Temu dropped, and sales dropped significantly. The import duties and price hikes came after the Trump administration revoked the “de minimis” exemption that previously allowed goods worth less than $800 to enter the US duty-free from mainland China and Hong Kong.
Now, Temu is taking a different route. The company has stopped shipping products to US customers from China. Instead, all sales to buyers in the US are now managed by “locally based sellers,” with orders fulfilled domestically to keep prices low.
“Temu’s prices for U.S. consumers remain unchanged due to the platform’s shift to a local fulfillment model,” a Temu representative said in a statement provided to CNET. “Temu is actively recruiting U.S. sellers to join the platform.” To see how U.S. tariffs are changing the prices of everyday products, check out the CNET Tariff Pricing Tracker. Which items on Temu are affected by U.S. tariff rules? Since Temu has stopped shipping to the U.S. and has begun fulfilling orders from locally based sellers, none of the products on the Temu site are affected by the new U.S. tariff rules right now.
However, when Temu’s inventory in U.S. warehouses runs out, shipping may resume, and if the current tariff and minimum conditions with Chinese goods persist, prices are likely to increase significantly. Shein, a similar Chinese e-commerce platform based in Singapore, may be a sign of what may happen with Temu. Shein has adjusted its prices across a variety of notable categories.
Beauty and health products have seen an average 51% increase, while household and kitchen items have increased by 30%. A recent survey of 300 women’s clothing items by The Washington Post found that prices were 43% higher on average.
According to The Daily Beast, the price of a kitchen towel increased from $1.28 to $6.10 (a 377% increase) and the price of a meat shredder increased from $2.91 to $9.02 (a 219% increase).
These changes are part of a broader trend where American shoppers are facing rising costs on imported goods. The imposition of higher tariffs as well as the elimination of the “de minimis” rule have disrupted the business models of these fast-fashion retailers, driving up prices for consumers.
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In a significant development for global trade, the United States and China have agreed on a 90-day pause in their escalating tariff war, significantly reducing tariffs on each other’s goods. The US will reduce tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on US goods from 125% to 10%.
The agreement, reached during talks in Geneva, is aimed at easing tensions that have put a strain on the global economy. US Treasury Secretary Scott Bessant confirmed the reductions on Monday, and stressed the importance of continued dialogue between the two countries.
Financial markets reacted positively to the news on Monday. The Dow Jones Industrial Average rose 951 points and the S&P 500 gained 2.6%, approaching its all-time high set in February 2025, according to AP News. Chinese stocks also rose, with Alibaba shares up 5.7%, buoyed by the tariff news and the company’s recent focus on artificial intelligence initiatives.
While the agreement has been welcomed by China’s official media as a constructive move, public sentiment remains cautious, and there are doubts about the durability of this ceasefire. Analysts believe the pause is temporary and unresolved issues could resurface if a comprehensive agreement is not reached.
For tech consumers, tariff cuts could lead to lower prices on electronics and other goods. However, it’s important to note that some tariffs, such as a 20% duty on Chinese technology imports, are still in place. For more updates on how tariffs are affecting the products you use most, check out the CNET Tariff Pricing Tracker, which is updated daily.