Temu Stops Shipping Products From China to U.S. as Trump Closes Tariff Loophole
New York Times2 days
Temu Halts Direct Shipments from China to US
Above: A ship navigates the Bosphorus Strait past a cruise ship in Istanbul on May 03, 2025. The commercial transportation industry is bracing for further disruption to global shipping routes due to Trump's tariff war with China. Image copyright: Chris McGrath/Staff/Getty Images News via Getty Images
The Spin
Republican narrative
Closing the de minimis loophole levels the playing field for American businesses devastated by unfair competition. The exemption granted China privileged access to the U.S. market at the expense of American manufacturers and jobs. The flood of unvetted packages also created a security risk, allowing dangerous narcotics and counterfeit goods to enter the country with minimal scrutiny.
Democratic narrative
The elimination of the de minimis exemption will ultimately hurt American consumers who benefited from affordable goods. Research shows nearly half of these shipments went to the poorest U.S. zip codes, while only 22% reached the wealthiest areas. Ending the exemption would result in $8 billion to $30 billion in additional annual costs that would eventually be passed on to consumers.