Chinese e-commerce company Temu announced Friday that it has stopped shipping products directly from China to the United States and will now fulfill all US orders from local warehouses.

The announcement comes the same day a trade loophole was officially closed by the Trump administration. The exemption, which allowed Chinese-made goods worth less than $800 to enter the US without paying import duties, was terminated Friday. President Trump had previously called the exemption a “big scam” that hurt American small businesses.

When Trump revealed last month that the loophole would be ending, Temu responded by saying it would adjust its pricing. The company began adding import charges for US customers buying from China, in some cases doubling the price of items, according to a report by the New York Times.

On Friday, however, a Temu spokesperson said pricing for US consumers “remains unchanged as the platform transitions to a local fulfillment model.”

“Temu has been actively recruiting U.S. sellers to join the platform,” the Temu spokesperson said in a statement. “The move is designed to help local merchants reach more customers and grow their businesses.”

The now-closed loophole had been widely used by companies to ship inexpensive goods to the US without triggering import fees, a practice that critics say undermined American manufacturing. Kim Glas, president of the National Council of Textile Organizations, welcomed the change, explaining in a statement that the exemption had allowed “unsafe and illegal Chinese goods” into the US.

“Today’s action by the administration is an important step forward to help rebalance the playing field for American manufacturers,” Glas said in a statement, per The New York Times. 

While some warn the policy shift may result in higher prices for American consumers and hurt businesses that relied on the exemption, supporters argue it will protect domestic industries and reduce the flood of low-cost imports from China.