Temu changes business model due to Trump tariffs: there will be no goods from China in the US – Bloomberg

Online marketplace Temu, which has rapidly gained popularity in the US thanks to cheap Chinese goods, is changing its business model due to Donald Trump's tariff policy. Bloomberg writes about this.
Temu now plans to sell exclusively products from American suppliers and operate on the principle of "local fulfillment."
Temu, a subsidiary of Chinese holding company PDD Holdings, has begun actively searching for sellers in the U.S. The company claims that this model will allow it to avoid paying import duties while keeping prices for American consumers at the same level.
This decision was a response to new US trade policy: the Trump administration recently abolished the so-called "de minimis" tariff exemption, which allowed small packages from China to be imported tax-free.
Back in February, Temu asked Chinese manufacturers to ship products in bulk to warehouses in the US so they could sell them locally. But if imports remain expensive, replenishment of inventories will also become more expensive, and therefore final prices could rise.
Temu also states that the transition to a local model will help American small businesses expand access to consumers and improve the quality of service.
- Previously, Temu passed on almost all of the new import taxes imposed by Trump to American consumers, causing prices for some goods to double.
- Shein also raised prices by up to 377% on its products in the US for small packages from China and Hong Kong due to new tariffs.