Temu Says It's Shipping from the U.S, But Goods Still Come from China
Wafric News | May 3, 2025
Chinese-owned e-commerce platform Temu has announced a sweeping change in its U.S. operations, declaring that all American orders will now be fulfilled from within the United States — a move widely seen as a response to rising trade pressure and new tariff policies under former U.S. President Donald Trump.
But while the company claims it’s now “shipping locally,” industry experts and sharp-eyed customers say the products themselves remain very much made in China.
“Temu has been actively recruiting U.S.-based sellers to join the platform,” a company spokesperson said Friday, just hours after the expiration of a key U.S. tariff exemption known as the de minimis rule. The exemption had allowed shipments under $800 to enter the U.S. without duties — a loophole that Chinese e-commerce sites like Shein, AliExpress, and Temu used to flood the market with ultra-cheap goods.
With Trump’s new tariffs aiming to “bring manufacturing back to America,” Temu’s sudden pivot is a strategic play to sidestep costly import duties — not a shift in where the goods are actually produced.
The ‘Local Shipping’ Loophole
Temu’s model now relies heavily on stockpiling inventory in U.S. warehouses, a tactic that Shein has also embraced in recent years. It allows the company to say orders are being “shipped domestically,” even if the products were originally manufactured in Chinese factories and bulk-shipped to the U.S. long before the tariffs took effect.
Economists warn the move is more about optics than reshoring. “Warehousing in the U.S. is not the same as producing in the U.S.,” said Professor Chris Tang of UCLA’s Anderson School of Management. “These are Chinese-made goods rerouted through American facilities to reduce delivery times — and now, to dodge political scrutiny.”
Consumer Backlash and Stock Shortages
Temu’s site and social media platforms are already showing signs of strain under the new model. U.S. customers report widespread stockouts and higher prices.
One user on Reddit said nearly 60 items in their cart vanished overnight, while another claimed their selection of over 300 items shrank to just two. Some even reported added fees for orders under $30, contradicting Temu’s earlier promise of free delivery with no extra charges.
“Temu is gone! What I saw today completely convinced me,” one frustrated shopper wrote. “The so-called ‘local sellers’ clearly don’t have the stock or variety I was used to.”
Temu, which doesn’t publicly disclose its suppliers, faces mounting logistical challenges. Analysts say the company will either need to replenish inventory at higher cost, offer alternatives, or raise prices to keep up with demand.
Indeed, subtle price hikes have already begun, with some product categories seeing noticeable increases just days after the tariff rules shifted.
A Global Lesson in Digital Trade
Temu’s evolving model reveals more than just a clever workaround to American tariffs. It’s a window into the complex, global supply chains that power fast fashion, electronics, and consumer goods — and a warning about the limits of quick fixes in international trade.
For Africa, where debates around intra-continental manufacturing and e-commerce localization are gaining steam, Temu’s playbook could be a case study in what not to imitate: shipping locally doesn’t mean sourcing locally.
As global powers tighten borders and tariff rules shift with politics, it’s clear: in the digital age, where a product comes from isn’t always where it’s going — or where it’s claimed to be from.
By WafricNews Business Desk.
By WafricNews Business Desk.
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