• Temu halted all China shipments and now sells only from U.S. warehouses due to new U.S. tariff rules affecting Temu Blocks. Indeed, TEMU halts shipments to adapt swiftly to these changes.
• Trump’s removal of the $800 tariff exemption caused sharp cost increases for low-cost importers like Temu and Shein, creating challenges for Temu Blocks.
• Temu plans to work with American suppliers to stay competitive despite higher prices and fewer product options, especially since TEMU halts shipments from China, impacting Temu Blocks.

Temu shocked its users this week by halting all shipments from China. This affects Temu Blocks because the popular online store now only sells items stored inside U.S. warehouses. After TEMU halts shipments, if a product isn’t already on American soil, the app shows it as “out of stock.” This big change affects thousands of bargain-hunting customers who use Temu for cheap everyday goods. Items like $2 shirts and $5 shoes made the app a go-to destination for many shoppers. Now, customers will notice fewer choices and rising prices across the site.

New U.S. Trade Rule Ends China Shipping Loophole

This shift didn’t come out of nowhere. It happened right after the U.S. closed a major tax loophole, significantly influencing Temu Blocks. In April, President Trump signed an executive order that removed the “de minimis” rule. As a result, TEMU halts shipments under the $800 exemption. That rule let foreign sellers avoid tariffs on items under $800. Starting Friday at 12:01 a.m. EDT, border agents began charging tariffs on all shipments from China. That rule change made it too expensive for Temu to keep shipping cheap products from overseas. So, the company had to act fast.

Tariffs Hit Temu and Shein With High Costs

The new tariffs now hit nearly all imported goods. But Chinese products face the highest taxes, with rates as high as 145%. This puts extreme pressure on discount sellers like Temu and Shein. Both companies built their businesses on low prices and fast shipping from Chinese factories. With the new rules, that model no longer works. They can’t afford to pay heavy tariffs and still keep prices low. So they either raise prices or find new ways to stay in business.

Prices Already Rising as Tariffs Take Effect

Temu and Shein warned customers that prices would go up by April 25. The price hikes started almost right away. A $2 shirt now costs $4. A pair of $5 shoes jumped to $9.50. These price increases show how fast the new rules are changing the market. Shoppers who relied on Temu to save money now face fewer deals. Many are wondering if the days of ultra-cheap online shopping are over.

Temu Looks for New Suppliers in the U.S.

Temu didn’t just stop shipping from China. It also started a new plan. The company is now recruiting U.S. sellers to supply its products since TEMU halts shipments from its previous sources. This helps Temu restock without relying on China, which is crucial for Temu Blocks. By shifting to American warehouses and suppliers, Temu hopes to avoid tariffs and keep its prices low. This move could help the company stay competitive even with new trade rules. It also means more business for local sellers who want to reach Temu’s massive customer base.

U.S. Retailers May Benefit from the Shift

Many American businesses have seen Temu and Shein as threats. These low-cost apps cut into sales and even forced some stores to close. In bankruptcy filings, several U.S. brands listed Temu and Shein as major reasons for their collapse. Now, with tariffs in place, local retailers might catch a break. If Chinese imports become too expensive, U.S. brands could finally compete again. This shift could level the playing field for American stores that follow the rules and pay taxes.

Experts Say Temu May Still Survive the Changes

Even with all these new challenges, experts believe Temu isn’t done yet. Steve Dennis, president of SageBerry Consulting, says Temu has more going for it than just cheap labor. The company also uses smart technology and quick supply chains. It avoids markdowns by producing only what people want. It responds fast to fashion trends and gets products to market quickly. These strengths still give Temu an edge, even as costs rise.

Online Shoppers Face a New Reality

This change marks a turning point in how Americans shop online. As Temu Blocks adjusts to new rules, apps like Temu and Shein that offered cheap products directly from China may be fading fast. Shoppers will likely see higher prices and fewer ultra-low deals. Still, Temu is adapting. It’s trying to rebuild its supply chain inside the U.S. If it succeeds, it could remain a major player in the market—just with a different business model.