Temu has said it will stop selling goods imported from China in the US directly to customers from its platform.
The online marketplace said sales would now be handled by US firms with orders fulfilled from within the country.
The move comes as a duty-free rule for low-value packages is closed. Temu and rival Chinese retail giant Shein had previously relied on the so-called 'de minimis' exemption to sell and ship low-value items directly to the US without having to pay duties or import taxes.
'De minimis' in this context refers to a US trade rule enacted by Congress in 1938 to avoid the expense of collecting only small amounts of imported levies.