Temu Shifts to US Fulfillment Amid Tariff Pressure

Recently, foreign media reported that Temu—a cross-border e-commerce platform heavily reliant on Chinese supply chains—has been significantly impacted by the Trump administration's new tariff policies, including the elimination of the de minimis tax exemption for low-value imports. In response, Temu is undergoing a major strategic shift in the U.S. market. The company announced it will not raise prices for American consumers. Instead, it is transitioning to a full “local fulfillment model,” where orders will be handled and shipped by domestic U.S. sellers.

Earlier, Temu published a notice on its official website stating that it would raise product prices starting April 25 due to “changes in global trade regulations and tariffs.” As of now, that notice remains visible. However, in its latest statement, Temu clarified that all U.S. sales activities will be managed by local sellers. The platform has already begun actively recruiting American sellers to join, aiming to help them reach more customers and grow their businesses.

Following the policy shift, Temu swiftly updated its website and app interface. Products that were previously shipped directly from China are now marked as “out of stock,” and users can only browse and purchase items fulfilled from U.S. local warehouses. To cope with the sudden policy changes, Temu had briefly imposed import surcharges of up to 130% to 150% on direct-from-China items, causing prices to double or even exceed original amounts.

Now, with its strategic adjustments in place, locally fulfilled products on Temu are labeled as “no import fees,” and buyers no longer face additional charges upon delivery. At the same time, the company has suspended direct shipping from China to the U.S., sharply reduced its online ad spend, and restructured its supply strategy. Although these moves may affect short-term revenue, Temu reaffirmed its commitment to localization to maintain its competitive edge.

Industry analysts note that Temu now faces potential risks of declining profit margins. Some Chinese sellers may divert excess inventory to markets outside the U.S. Meanwhile, Temu's push to expand its U.S. seller base means it is poised to compete head-on with e-commerce giants like Amazon and Walmart in the local supply chain arena. In contrast, Shein—whose product categories are more streamlined and inventory more focused—may be less affected by the latest tariff-related disruptions.