Temu Shifts Focus to Local Sellers amid U.S. Tariff Changes

Temu, the e-commerce platform owned by PDD Holdings, is shifting its U.S. business model to focus exclusively on selling products from local American merchants, moving away from its previous strategy of importing low-cost goods from China. This change is in response to the elimination of the de minimis tariff exemption for small parcels and the imposition of steep tariffs by the U.S. government under President Trump, which have significantly increased import costs. By adopting a 'local fulfillment' approach, Temu aims to sidestep tariffs, maintain low prices for American consumers, and support the growth of U.S. merchants. The company is actively recruiting local sellers and has stated that products will be shipped domestically. This strategic pivot mirrors similar adjustments by other Chinese e-commerce players like Shein and Alibaba, who have also raised prices or passed on new tariff surcharges to consumers. The move reflects broader challenges for global retailers operating in the current U.S.-China trade environment.