Why Temu Prices Are Higher in 2026 — Tariffs, De-Minimis, and What You Can Still Claim Back
Temu got noticeably more expensive in 2026. If you've been seeing higher prices — or stumbling across headlines asking whether Temu is shutting down — here's the plain-English version of what actually happened, what it means for your wallet, and why price-adjustment refunds still pay out.
Last verified: 23 September 2026. Tariff policy is actively changing; US and EU import rules have already shifted multiple times and could change again. This page covers the position as of late September 2026. For your own purchases, always confirm the final checkout total, which reflects whatever rules are current.
The short answer
Temu prices are higher in 2026 because two big import-cost changes hit in close succession: the US removed the de-minimis customs exemption for goods from China (meaning US Temu orders now face standard import tariffs), and the EU scrapped its long-standing €150 duty-free threshold and replaced it with a flat customs duty on low-value parcels. Neither change has anything to do with Temu's financial health. The company is not shutting down, and the price increases reflect import costs that were always going to arrive once governments closed these long-criticised loopholes.
The thing that has not changed: Temu's underlying pricing is still highly dynamic. Individual item prices still move up and down after you order, and Temu's 30-day price adjustment policy — which lets you claim back the difference when a price drops — still applies. Those refunds are still there to be collected.
Is Temu shutting down or going out of business?
The confusion is understandable. When prices jump 30–50% seemingly overnight and news headlines talk about "the end of cheap Chinese imports," it's natural to wonder whether a platform built on low prices can survive. The honest answer is: Temu's business model is under real pressure, and the era of near-zero-tariff direct shipments from Chinese sellers to US or EU consumers is over. But "under pressure" is very different from "shutting down." Temu has responded by restructuring its supply chain — pushing more fulfilment into US and EU warehouses, working with local sellers in some markets, and absorbing some tariff costs to stay competitive on price. The platform is still operational and still selling.
What ended was the specific pricing model that made Temu legendary for low prices. That model relied heavily on goods entering the US duty-free under the de-minimis exemption and the EU effectively duty-free under the €150 threshold. Those regulatory free passes are gone.
The US: what the de-minimis rule was and why it ended
For most of the last decade, a provision of US customs law known as Section 321 de-minimis allowed any single parcel valued under $800 to enter the United States with no import duties and almost no customs paperwork. Because the overwhelming majority of Temu orders are well under $800 per parcel, virtually every US Temu shipment qualified. This was not a loophole unique to Temu — it was a general trade provision, but platforms shipping direct from Chinese sellers at scale were by far its biggest beneficiaries.
The closure happened in two moves:
- The Biden administration began restricting de-minimis for goods subject to Section 301 China tariffs in 2024, meaning a growing share of Temu products lost the exemption even before a blanket rule change.
- The Trump administration removed de-minimis entirely for goods from China and Hong Kong in early 2025, exposing all China-origin parcels — regardless of value — to the same tariff and formal-entry requirements as any other import from China.
The practical effect on Temu's US operation was significant. Customs duties on Chinese goods can run from a few percent to well over 100% depending on the product category (clothing and electronics face different rates, for instance). Formal customs entry adds paperwork and logistics costs. Temu responded with a mix of price increases on the platform, restructuring its US fulfilment toward local warehouses and US-based sellers, and absorbing part of the cost on some items to stay competitive.
The EU: flat customs duty from July 2026
The EU's change is separate and follows a slightly different structure. Two things happened in the EU, roughly three years apart:
2021 — import VAT on every parcel, regardless of value. The EU scrapped a €22 VAT-free threshold that had let small parcels enter with no import VAT. Since 2021, every parcel entering the EU — including every Temu order, no matter how small — has carried import VAT at the buyer's country's standard rate. This part is not new in 2026, but it's worth knowing because the 2026 duty sits on top of it.
1 July 2026 — the €150 customs-duty exemption ends. Until this date, parcels valued at €150 or under still avoided customs duty even though VAT applied — and most Temu orders fell comfortably under €150. From 1 July 2026, the EU removed that duty-free treatment and introduced a flat temporary customs duty of €3 per tariff category (per HS code category) per order. It is charged once per tariff class in your basket, not once per item or once per parcel. You still pay import VAT on top.
This is described as transitional legislation: the €3 flat rate applies until 1 July 2028, when the EU is expected to move to standard product-specific duty rates determined by each item's HS code. Temu handles the collection — both the VAT and the duty show as explicit line items in your EU checkout before you confirm payment.
What this means for what you pay
The exact impact on any given Temu order varies by where you shop, what you're buying, and how Temu has priced in the tariff cost. Here's a rough picture by region:
| Region | What changed | Effect at checkout |
|---|---|---|
| United States | De-minimis removed for China-origin goods | Listed prices higher, reflecting import tariffs and logistics restructuring. Some items now fulfilled from US warehouses at different (sometimes higher, sometimes lower) prices. |
| European Union | €150 duty exemption ended; flat €3/HS-category duty added from 1 July 2026 | Import VAT (has applied since 2021) + €3 flat duty per tariff category shown as separate checkout lines. Temu shows a personalised "covers X% of import charges" discount on some orders. |
| United Kingdom | The UK already removed its own £135 duty-free threshold for China-origin goods earlier; the EU July 2026 change does not apply here | UK import VAT + customs duty on China-origin goods already applied; pricing reflects this. The UK rules are separate from the EU post-Brexit. |
| Other markets (AU, CA, SG, etc.) | Each market has its own customs regime; Australia, Canada, Singapore have their own low-value-parcel GST/VAT rules separate from the US/EU changes | Varies — check the checkout total in your local Temu store, which reflects whatever import charges apply to your market. |
One thing consistent across all markets: Temu's listed prices now include most import costs rather than adding them as a surprise at delivery. The checkout total is the number that matters — whether that includes import VAT shown separately, a duty line, or a price that already has tariff costs baked in.
Price adjustments still work — here's why
Here's the part that matters for getting money back: the tariff changes affected what you pay upfront, but they did not affect Temu's price adjustment policy.
Temu's pricing is highly dynamic. Sellers run promotions, compete on price, and Temu's own platform runs flash sales and algorithmic repricing constantly. The price of an item you ordered this week can fall next week — and when it does, you're entitled to claim the difference back under Temu's 30-day price adjustment policy. The claim is against the goods price you paid, not the import charges added at checkout (those are a one-time tax, not part of the goods price). So if an item you ordered for a tariff-inclusive listed price subsequently drops in listed price, the adjustment claim still applies to that goods-price difference.
Temu also allows repeat adjustments on the same order. If you claim once and the price drops again, you can claim again — the 30-day window applies from the purchase date, not from the previous claim. This is a verified fact about how Temu's adjustment system works, not a hack or edge case.
Get the free app and start claiming automatically →
If you've been manually checking your orders for price drops — or not checking at all because it feels like too much effort — our guides walk through the process in full:
- How Temu price adjustments work — the complete guide to what qualifies, how to claim, and what to expect.
- What to do when Temu's price drops after you order — a step-by-step walkthrough for claiming the difference.
- Temu EU import fees and customs charges, explained — if you're in the EU, this covers the July 2026 checkout changes in full.
Frequently asked questions
Is Temu shutting down or going out of business?
No. Temu is not shutting down. Temu's parent company, PDD Holdings, reported revenue growth through 2025–2026. What changed is the regulatory environment: the US removed the de-minimis customs exemption for packages from China, and the EU ended its low-value duty-free threshold. These are import-cost increases that raised prices and squeezed Temu's margins — not signs the company is closing. Temu has adapted by restructuring its logistics, using more local warehousing, and absorbing some tariff costs on certain products.
Why are Temu prices so much higher now?
Two import-cost changes hit in 2024–2026. In the US, the de-minimis exemption that had allowed China-origin parcels under $800 to enter duty-free was removed, exposing all US Temu orders to standard China import tariffs. In the EU, the €150 customs-duty exemption ended on 1 July 2026, replaced by a flat €3 duty per tariff category on top of import VAT. Both changes flow through to the prices you see and the totals you pay at checkout.
What was the US de-minimis rule for Temu?
Section 321 de-minimis let any single parcel under $800 enter the US from anywhere with no import duties and minimal paperwork. Because most Temu orders are far below $800, virtually every US Temu shipment qualified. The Biden administration restricted it for Section 301-tariffed China goods in 2024; the Trump administration removed it entirely for China and Hong Kong goods in 2025. The result: US Temu orders now face the same import tariffs and entry requirements as any other import from China, which can run from a few percent to over 100% on some product categories.
What is the EU import duty on Temu orders from July 2026?
From 1 July 2026, EU orders from outside the bloc carry a flat €3 customs duty per tariff (HS code) category per order, charged once per category regardless of how many items in that category are in your basket. This is in addition to import VAT at your country's standard rate, which has applied to all EU parcels since 2021 regardless of value. Temu shows both as separate line items before you confirm payment. The €3 rate is described as transitional, running until 1 July 2028 when it is expected to be replaced by standard product-specific duty rates.
Do Temu prices still drop after purchase in 2026?
Yes. Temu's underlying pricing is still highly dynamic — sellers compete, promotions run, and algorithmic repricing means prices on items you've already ordered do fall. Import costs are now mostly baked into listed prices rather than added at the door, but a drop in the listed goods price after your order still creates an eligible price adjustment claim. The claim is on the goods price you paid, not the import charges.
Can I still get a Temu price adjustment now that tariffs have pushed prices up?
Yes. Temu's price adjustment policy — which lets you claim a refund of the difference if a purchased item drops in price within 30 days — was not changed by the tariff rules. The adjustment is calculated against the goods price you paid at order time. If that price falls after purchase, you can claim the difference. Temu also allows repeat adjustments on the same order: if the price drops again after an initial claim, you can claim again within the 30-day window.
Is Temu still worth using after the price increases?
That is a personal decision, and the honest answer is it depends on what you're buying and where you're based. Temu's pricing advantage over traditional retail has narrowed, and some categories that were dramatically cheap are now priced more like mainstream online retailers. Others are still competitively priced because the underlying manufacturing cost is low. What hasn't changed is that if you do buy on Temu and the price drops after your order, you're entitled to that money back — so the question of whether it's "worth it" is partially about whether you're capturing those post-purchase refunds. Most people who shop on Temu don't claim them at all.