Temu, a Chinese bargaining retailer, has changed the U.S. business model as new rules for low-value goods take effect.

In recent days, Temu has suddenly moved its website and app to a list that shows only products shipped from U.S. warehouses. Items shipped directly from China that previously covered the location are now marked as out of stock.

Temu named itself in the United States and is the destination for over-finished items shipped directly from China, such as $5 sneakers and $1.50 garlic press. It has been able to keep prices low due to the so-called De Minimis rule, which allows items worth $800 or less to be tax-free since 2016.

The loophole expired at 12:01 a.m. Friday due to an executive order signed by President Donald Trump in April. Trump briefly suspended his minimum rule in February and then resumed supplies a few days later as customs officials struggled to process and charge tariffs on a range of low-priced packages.

The end of De Minimis and Trump's new 145% tariff on China forced Temu to raise prices, suspending its aggressive online advertising drive, now changing the options for merchandise available to U.S. shoppers to avoid higher taxes.

A TEMU spokesperson confirmed to CNBC that all sales in the United States have now been processed by local sellers and said it has been achieved “from within the country.” Prices for American shoppers “stay the same”, Temu said.

"Temu has been actively recruiting U.S. sellers to the platform," a spokesperson said. "The move is designed to help local merchants attract more customers and grow their business."

Before the change, shoppers trying to buy Temu products from China faced a 130% to 150% "import fee". The cost of fees is usually higher than the price of a single item and doubles the price of many orders.

Temu promotes “no import fees” and “no additional fees when delivering” local products.

The company, owned by Chinese e-commerce giant PDD Holdits inventory has gradually been built over the past year due to expected trade tensions and the escalation of de Minimis removal.

Shein also benefited from the vulnerability, raising prices last week. The fast fashion retailer added a banner at checkout that reads: "The price you pay includes tariffs. You never have to pay extra when delivering."

Many third-party sellers Amazon Rely on Chinese manufacturers to purchase or assemble their products. The company's Temu competitor, known as Amazon Haul, relies on De Minimis to deliver prices directly from China to the United States for no more than $20.

Amazon said Tuesday after dusty with the White House that it considered showing tariff-related shipping products before De Minimis cutoff, but has since cancelled those plans.

The Biden administration has been cutting the rule before Trump’s second term. Critics of the Minimis rule believe it will harm U.S. businesses and facilitate the transportation of fentanyl and other illegal substances, as they say the parcels are unlikely to be inspected by customs agents.

- CNBC Gabrielle Fonrouge Contributed to this report.

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