Temu Resumes Direct Shipments from China to U.S. Consumers After Trade Truce

In a turn of events that highlights the volatility and responsiveness of global eCommerce logistics, Temu, the rapidly expanding budget eCommerce platform owned by PDD Holdings, has resumed direct shipping of products from Chinese factories to U.S. customers. This follows the reinstatement of a trade truce between Beijing and Washington. 

Background: What Changed

In early May 2025, President Donald Trump’s administration eliminated the “de minimis” tariff exemption—a long-standing policy that allowed packages valued below $800 to enter the U.S. duty-free. The move dramatically disrupted cross-border eCommerce by making China-origin shipments significantly more expensive and operationally complex.

As a result, Temu swiftly pivoted to a local fulfilment model, relying on U.S.-based inventory and warehouses to continue serving American customers. This also led to reduced ad spending in the U.S. and a substantial decline in daily users, by approximately 48% compared to March levels. 

The Truce and Return to Direct Shipping 

Following recent trade negotiations, the U.S. agreed to temporarily soften tariff pressures, enabling platforms like Temu to revive their international supply chains. As of July, Temu has reinstated its “fully managed” shipping service, meaning it once again handles logistics and customs clearance for suppliers directly from China.

Key components of the restart include: 

• Resumption of direct-to-consumer shipping from China
• Expanded internal logistics infrastructure, reducing reliance on third-party providers.
• U.S. advertising investments returning to Q1 2025 levels, signalling confidence in a renewed shipping model. 

Strategic Impacts and Industry Significance 

This shift underscores the agility of cross-border eCommerce players in adapting to geopolitical changes. For Temu: 

• It restores its cost-competitive pricing, previously powered by low-cost direct shipping.
• It improves operational control over logistics and customs, potentially speeding up delivery and reducing costs.
• It indicates a willingness to recalibrate strategies based on shifting trade landscapes, a key trait for sustained global growth. 

Challenges Ahead 

Despite the optimism, several risks remain: 

• The tariff relief is temporary, raising concerns about long-term viability if trade terms revert.
• Any renewed escalation could force Temu back to a local fulfilment model, potentially increasing costs and limiting product availability.
• U.S. consumer trust may not rebound immediately in response to shifting fulfillment models; consistency will be critical. 

The Bigger Picture 

Temu’s return to direct shipping is emblematic of broader trends in international digital commerce—where pricing strategies, trade policy, advertising, and logistics are intricately intertwined. Whether the truce evolves into a more stable framework will be vital to Temu’s efforts to reclaim ground in the U.S. market.