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

Beijing, China

May 05, 2025 (Updated: February 11, 2026) 0 Neutral I want small business or entrepreneurial updates

TheWkly Analysis

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.

Multiple perspectives analyzed from 0 sources

What this means for you:

•	If you shop on Temu, expect shipping times to remain stable or maybe lengthen as it refines domestic stock and transport processes.
•	Small importers can learn from Temu’s strategy—local warehousing can mitigate tariffs but involves added inventory costs.
•	In the meantime, watch for future policy changes; tariff expansions or de-escalations can shift drop-shipping economics again.

Key Entities

• Temu, China, US

Multi-Perspective Analysis

Left-Leaning View

Temu's decision to halt shipments from China highlights the ongoing challenges posed by tariffs and the need for companies to adapt to a changing trade landscape that prioritizes domestic fulfillment.

Centrist View

Temu's shift to a US fulfillment model reflects a strategic response to tariffs, aiming to maintain competitiveness while navigating complex international trade regulations.

Right-Leaning View

By adopting a US fulfillment model, Temu is taking a proactive step to avoid tariffs, showcasing the importance of American businesses prioritizing domestic operations in the face of global trade tensions.

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