Temu, the online retail giant known for its low prices, has addressed growing concerns over steep import charges that could impact U.S. shoppers. As tariffs on Chinese goods—Temu’s main supply source—have surged, customers have reported sharp price increases. In response, Temu says it is shifting to a “local fulfilment model,” where all U.S. sales are now managed by domestic sellers with orders shipped from within the country. Items previously imported from China have been marked out of stock.
To support this transition, Temu said it is actively recruiting American vendors, aiming to help local businesses expand their customer base. Despite shopper reports of inflated costs, Temu insists that its U.S. pricing remains unchanged. Recent examples, however, show significant hikes—such as a $34 jacket totaling $83 with import fees and taxes, and a $119 mattress costing $273 after similar markups, according to reports.
This shift follows the U.S. government’s decision to eliminate the “de minimis exemption” for Chinese and Hong Kong imports, which had allowed packages valued under $800 to enter duty-free. The exemption’s removal, effective Friday, is part of a broader crackdown on alleged deceptive shipping practices. With roughly 92% of incoming packages previously qualifying under this rule, many low-cost goods are now subject to new tariffs and fees—with further increases expected in June.
Alongside pricing changes, Temu is evolving its business model to resemble Amazon’s, aiming to expand product variety and enhance its U.S. user experience—though some updates could significantly affect loyal shoppers.
