Chinese e-commerce giant Temu, owned by PDD Holdings, has resumed direct shipments from China to the United States following a breakthrough in trade negotiations between Washington and Beijing. This move comes after a period of significant disruption for Temu, which had previously halted direct sales due to the closure of the “de minimis” customs loophole and the imposition of steep tariffs on Chinese imports. The resumption of direct sales signals a potential shift in the cross-border e-commerce landscape and could restore some of the product variety and low prices that made Temu popular among American bargain hunters.
In recent weeks, items that had been removed from Temu’s U.S. marketplace have reappeared, with some Chinese sellers reporting that select products are once again available to American consumers. This change follows the adoption of a new framework for a trade deal between the U.S. and China, which has eased some of the restrictions that previously forced Temu to rely exclusively on U.S.-based sellers and local fulfillment centers. The company had shifted to this local model in response to regulatory changes, aiming to support American merchants and avoid the newly imposed import duties.
Temu’s pivot back to direct-from-China sales comes at a critical time for the platform. After the initial halt in direct shipments, Temu experienced a sharp decline in U.S. user engagement and sales growth, with daily app users dropping by 58% in May and sales declining by 15.7%. The restoration of direct shipments is an attempt to regain market share and consumer interest by reintroducing a wider selection of goods and potentially lower prices, leveraging the cost advantages of Chinese manufacturing.
Company leadership has emphasized that Temu is working closely with merchants across regions to ensure stable prices and abundant supply for consumers worldwide, amid what they describe as a “rapidly changing external environment.” As the trade truce takes effect, American shoppers may once again benefit from the platform’s hallmark low prices and vast product assortment, though the long-term impact on U.S. retailers and the broader trade relationship remains to be seen.
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(Source: Anewz.tv | SCMP | The Street)
