The change has also confused Temu sellers in China, who apparently weren’t notified ahead of time that Americans would soon no longer be able to browse their products. Adding to the confusion is the fact that Temu allegedly removed a large number of China-based sellers from its platform last week, only to quickly reverse the measure, leading some sellers to initially believe the same issue was happening again, according to sellers who shared their experiences on the Chinese social media site Xiaohongshu.
The furniture and home decor seller confirmed to WIRED that all his products shipped from China have been removed, a decision they believe was made in response to the end of the “de minimis” exception, a rule that allows Americans to import packages from anywhere in the world valued under $800 without needing to pay import duties.
Temu, Shein, and other companies that send customer orders directly from China have benefited from the trade provision for years, but critics say it has given foreign online shopping platforms an unfair advantage. Trump issued an executive order earlier this year declaring that de minimis would no longer apply to shipments from China starting on May 2.
“It may be that the platform needs to make some regulatory adjustments during this difficult period,” says the Temu furniture seller.
In the end, Trump’s trade war may fundamentally alter the way Temu operates in the US and its strategies for retaining American customers. The company became popular in the US both because of its lavish advertising spending and the fact that it could consistently provide lower prices for similar items offered on other ecommerce platforms. With high tariffs on Chinese imports and the end of de minimis exemption, the cost of Temu products could go up quite significantly, and it may also take longer for people to receive packages now subject to a more rigorous customs clearance process.
Even before Trump announced the tariffs, Temu was already making changes to its business model, including storing more inventory in US-based warehouses and experimenting with a more traditional, Amazon-esque logistics structure. The platform is also currently exploring another shipping program it calls “Y2,” which Temu started onboarding Chinese sellers to on April 27, according to Chinesellers, a newsletter focused on cross-border ecommerce.
As the publication explains, Y2 is a more flexible variation of Temu’s existing US warehousing model, with sellers shipping individual orders rather than bulk inventory. But the sellers are in charge of handling the new tariffs and customs declaration process, as well as any problems that may come with it, rather than Temu shouldering the burden. In many ways, it’s similar to an existing Amazon logistics option called “Fulfillment by Merchant,” or FBM.
These platform-wide changes highlight how quick Temu has been adapting to the current volatile policy environment, but the company also risks losing what was once a core part of its identity and comparative advantage. “It strikes me as a massive step backwards for Temu. What has really helped Temu differentiate itself from Wish and AliExpress is it controls the supply chain, so it can guarantee the delivery speed and the level of quality assurance to provide a consistent experience,” says Kaziukėnas.
The furniture Temu seller tells WIRED that they have so far held back from jumping on the Y2 wagon. “We’re a large organization, so we can’t make changes overnight. We’re still observing to see if the policies will change,” the seller explains.
Temu is also trying to increase its sales in other markets like Europe, where tariffs on Chinese imports remain far lower than in the US. One Chinese Temu seller tells WIRED that while their US listings have been removed, their overall sales have increased due to growth from other regions.
