On Friday, the U.S. version of Temu's website only displayed for sale products that it identified as "local," meaning stored in domestic warehouses, and that won't be subject to U.S. of tariffs of as high as 145% on goods made in China.

The move comes after the U.S. government eliminated the use of the "de minimis" rule for Chinese goods amid Trump's tariff war.

Companies squeezed by Shein and Temu are welcoming the end of a shipping rule that bolstered the Chinese e-commerce giants. But broader tariff concerns are outweighing any optimism.