Temu halts China shipments to U.S. as tariff exemption ends

Driving the news: Temu changed its website and app to only display listings from products stocked in U.S. warehouses.

• A Temu spokesperson confirmed to Axios that all U.S. sales are now handled by domestic sellers and fulfilled "from within the country," as part of the company's efforts to "help local merchants reach more customers." The company said that pricing for U.S. shoppers "remains unchanged."
• "Temu has been actively recruiting U.S. sellers to join the platform," the spokesperson added.

Catch up quick: Packages valued at less than $800 have enjoyed the "de minimis" exemption from added levies, which has allowed foreign online retailers like Temu and Shein to sell cheap items to American consumers.

The big picture: Critics of the de minimis exemption say it has hurt U.S. businesses, such as fashion retailer Forever 21, which recently began liquidating its U.S. stores after partly attributing the rise of Shein and Temu to its downfall.

• Supporters, however, say that U.S. consumers will suffer from higher prices with the elimination of tariff-free shipments.