Chinese bargain retailer Temu has abruptly stopped shipping products directly from China to U.S. consumers as it confronts President Donald Trump‘s 145% tariffs and the end of a key import loophole that took effect Friday.

What Happened: The e-commerce platform owned by PDD Holdings Inc. (NASDAQ:PDD) has pivoted to displaying only products shipped from U.S.-based warehouses on its website and app, reported CNBC.

Items previously shipped directly from China are now labeled “out of stock,” marking a dramatic shift for a company that built its U.S. presence on ultra-cheap goods shipped directly from Chinese suppliers.

“Temu has been actively recruiting U.S. sellers to join the platform,” a company spokesperson told CNBC. “The move is designed to help local merchants reach more customers and grow their businesses.” The spokesperson added that pricing for U.S. shoppers “remains unchanged.”

The change follows the expiration of the “de minimis” rule, which since 2016 had allowed items worth $800 or less to enter the country duty-free. The provision ended at 12:01 a.m. EDT Friday under an executive order signed by Trump in April.

Days earlier, Temu had briefly added “import charges” ranging from 130% to 150% on China-shipped products, which often exceeded the items’ prices.

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Why It Matters: The new regime imposes 90% duties or $75 per item on Chinese imports, scheduled to increase to $150 per item by June 2025.

The end of the duty-free loophole affects other retailers too. Shein has raised prices while adding a checkout notice that “tariffs are included in the price you pay.” Amazon.com Inc. (NASDAQ:AMZN) Haul, which competed with Temu by offering products priced at $20 or less shipped from China, is also impacted.

Critics of the de minimis provision have argued it harmed American businesses while facilitating shipments of illicit substances due to reduced customs inspection. Forever 21, now liquidating stores, previously blamed Temu and Shein’s ultra-low prices for gutting its customer base, according to court filings reported by Axios.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.