Temu Halts China Shipments, Adopts US Fulfillment Model to Sidestep Tariffs

Online shopping app Temu abruptly ended direct shipments from China to US buyers, citing new tariffs and the end of de minimis exemptions. Instead, the platform will fulfill orders from US-based warehouses. The move marks a rapid overhaul: Temu thrived on drop-shipping cheap goods directly from Chinese manufacturers. Now, they must store inventory domestically, bypassing heavier import fees on smaller parcels. Though Temu assured users their low prices remain, analysts suspect slight price hikes may loom due to increased logistics costs. Competitors like Shein likely face similar dilemmas. The policy shift highlights how the Trump administration’s aggressive tariff stance reshapes e-commerce supply chains, forcing companies to localize or pay steep duties.