Online shopping platform Temu is modifying its supply chain strategy in response to new tariffs introduced during the Trump administration.

Owned by PDD Holdings, the company is transitioning from its original model, which included control over pricing, shipping, and marketing, to a “half-custody” model that allows vendors to manage bulk shipping to American warehouses.

This change may eventually impact the entire US operation and could result in higher prices on the Temu platform as sellers encounter increased shipping costs and a loss of logistical efficiencies previously offered by the company.

This shift occurs as Temu, alongside competitor Shein, faces potential changes to the US “de minimis” rule.

Recent Temu developments