Temu, a rapidly growing Chinese e-commerce platform, has made a significant shift in its operations in the United States by blocking orders shipped from China. This change, which took effect before new import tax regulations come into play on May 2, 2025, has left many users and sellers bewildered. The new regulations are tied to the De Minimis rule, a customs provision that allows goods valued below a certain threshold to be imported without tariffs or complex customs procedures. In the U.S., this threshold is set at $800.
On February 1, 2025, President Donald Trump issued an executive order to eliminate the De Minimis exemption for goods imported from China and Hong Kong, effective February 4, 2025. However, just days later, on February 7, Trump temporarily suspended this order, although a 10% import tax on goods from China remains in effect. This rapid series of changes has created confusion among online retailers and logistics providers.
Under the previous De Minimis rule, U.S. customers could import goods valued under $800 from China without incurring import duties. This provision allowed platforms like Temu and Shein to offer competitively priced products to American consumers. However, with the recent executive orders, the exemption is set to be lifted, meaning that nearly all Chinese goods will now face import taxes, inevitably affecting pricing and shipping speeds.
In response to these changes, Temu has announced a shift to a domestic fulfillment model within the U.S., stating that all orders will now be shipped from within the country and handled by local sellers. This means consumers will no longer have the option to purchase items shipped directly from China. Despite this operational shift, Temu assures its U.S. customers that product prices will remain unchanged.
Prior to this announcement, Temu had already begun adjusting prices for items shipped from China on April 25, 2025, and added an “import charge” at checkout to reflect the impact of the new import taxes. This strategy has drawn criticism from Trump, who has been vocal about his dissatisfaction with how these e-commerce platforms operate.
The abruptness of these changes has left many American customers and sellers frustrated. For instance, one Reddit user lamented, "I can’t find the business equipment I used to order regularly," while another shared a conversation with Temu's customer service, revealing that the company could not currently display products from outside the U.S. and could not provide a timeline for when this option would be available again.
Chinese sellers on platforms like Xiaohongshu have also expressed concerns, with many reporting that Temu removed China-shipped items without prior notice, leading to chaos among suppliers. Some mistakenly believed they had been removed from the platform entirely after previously being delisted.
To mitigate the impact of these changes, Temu has begun testing a new logistics system called “Y2,” starting April 27, 2025. This model allows sellers in China to ship individual items directly to consumers in the U.S., rather than sending bulk shipments to U.S. warehouses. Under this model, sellers will be responsible for handling their own import duties and compliance, which is similar to Amazon's Fulfillment by Merchant (FBM) system.
However, larger retailers are hesitant to adopt this new model, as they struggle to adapt quickly to the new requirements. The elimination of the De Minimis exemption, which previously allowed low-value goods to enter the U.S. without tariffs, means that platforms like Temu and Shein will face significant challenges in 2025.
Despite the pressure from U.S. regulations, Temu is continuing to expand its market presence in Europe, where import taxes are less stringent. Some Chinese sellers have reported that their overall sales are still growing, primarily due to markets outside the U.S.
Analysts warn that if Temu loses control over its supply chain, it could find itself at a competitive disadvantage. The platform's previous advantages over competitors like Wish or AliExpress stemmed from its ability to manage quality and shipping speed closely. As U.S. tax measures reshape the cross-border e-commerce landscape, Temu must quickly adapt its logistics model while also maintaining its price and quality advantages amid uncertainty in international trade policies.
In a related development, China has officially allowed the importation of fresh durian from Cambodia, under strict phytosanitary regulations. The durians must come from registered farms and packing facilities, and must be certified free from pests and contaminants. This announcement was made by the General Administration of Customs of the People's Republic of China in a notice issued in 2025.
The new regulations are part of a broader effort to enhance agricultural cooperation between China and Cambodia. The durians exported to China must adhere to rigorous standards, including pest control and good agricultural practices (GAP). If any contaminants are detected during import, shipments may be halted, and the associated farms or packing facilities could face temporary suspensions.
This development is expected to benefit Cambodian farmers and durian exporters significantly. However, Thai exporters have expressed uncertainty about when they will be able to export durians to Cambodia, as Chinese officials are still assessing compliance with the new standards.
While Thailand produces high-quality durians, the area designated for durian cultivation is limited to about 20,000 rai, and the harvest period typically runs from April to July. This timing may overlap with the Cambodian durian season, but the overall production capacity remains low, minimizing the potential impact on Thai exports.
In conclusion, as Temu navigates these regulatory changes and the complexities of international trade, the future of cross-border e-commerce remains uncertain. The company's ability to adapt to new logistics models and maintain competitive pricing will be crucial in a rapidly evolving market landscape.
