Temu is abandoning the model centered around cheap Chinese imports that catapulted it to success in the US, aiming to sell only goods from local merchants to American consumers for the foreseeable future.

The administration's elimination of the so-called “de minimis” loophole has implications for businesses ranging from Etsy sellers to e-commerce behemoths.

As the United States ends a tariff exemption for small parcels on Friday, some retailers have stopped selling to US customers while others are seeking temporary workarounds in the hope the tariff rate may be reduced.