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Temu adapts US business model to Trump tariffs by embracing local sellers


Temu, the shopping platform owned by Chinese e-commerce giant PDD Holdings, has revised its business model in the US in response to “retaliatory” tariffs imposed by US President Donald Trump on Chinese imports and the end of the “de minimis” duty exemption policy.

The platform, which has rapidly gained popularity in the US, offers direct access to made-in-China products and markets itself as a bargain marketplace, allowing customers to “shop like a billionaire”.

Temu said on Friday that it shifted its US operations to a “local fulfilment model”, meaning all sales to American customers “are now handled by locally-based sellers, with orders fulfilled from within the country”.

“Temu has been actively recruiting US sellers to join the platform,” the company said, adding that the operational change would not affect pricing for US consumers.

Packages for Temu are seen at a clothing factory in Guangzhou, southern China. Photo: AFP
Packages for Temu are seen at a clothing factory in Guangzhou, southern China. Photo: AFP

The shift comes amid speculation that Temu, which lists its principal office as based in Boston, may phase out China-based merchants, requiring them to establish operations in the US or stop selling to American shoppers.



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