Temu resumes direct shipments to US after trade talks

Temu, owned by PDD Holdings, has resumed direct shipments from China to the US. This follows recent advancements in trade negotiations between Washington and Beijing.

Some items previously removed from Temu’s US marketplace last month have been reintroduced.

A seller from Guangdong said products, including dresses, became available for sale in the US on June 11.

However, many items remain offline under Temu’s “full custody” model, where the platform manages logistics, pricing, and tariffs.

As of June 14, Temu’s US website featured items shipped directly from China, such as a nylon hiking backpack.

This product had been unavailable for reviews between May 7 and June 2 but has now been reinstated.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ The de minimis roller coaster reshapes cross-border e-commerce economics

Temu’s direct shipping resumption highlights how significantly the de minimis rule influences international e-commerce business models.

When the US suspended the $800 duty-free threshold for Chinese imports in May, it fundamentally altered the economics of cross-border e-commerce, forcing platforms like Temu to shift to local fulfillment models to remain competitive 1.

This policy reversal comes after Chinese e-commerce retailers faced cost increases of 10-25% across various product categories, significantly impacting their ability to maintain the ultra-low pricing strategy that fueled their rapid US market growth 2.

The temporary reinstatement of the de minimis exemption represents a critical lifeline for these platforms, as it allows them to once again ship low-value goods directly from China without incurring duties that would make their business model unsustainable 3.

This pattern of regulatory change followed by business model adaptation demonstrates how e-commerce platforms must maintain operational flexibility to navigate unpredictable trade policies, a capability that larger, well-capitalized companies like PDD Holdings (with $364.5 billion in cash reserves) are better positioned to manage 4.

2️⃣ PDD’s “full custody” model creates unique tariff vulnerability

Temu’s struggle with US tariffs reveals a specific vulnerability in its parent company’s business approach that differs from competitors in cross-border e-commerce.