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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.
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.
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:
This shift underscores the agility of cross-border eCommerce players in adapting to geopolitical changes. For Temu:
Despite the optimism, several risks remain:
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.
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