Temu Ditches Chinese Imports Model to Avoid Trump’s Tariffs

Temu is abandoning the model centered around cheap Chinese imports that catapulted it to success in the US, aiming to sell only goods from local merchants to American consumers for the foreseeable future.

PDD Holdings Inc.’s online retail phenom, which much like Shein Group Ltd. burst onto the scene just a few years ago with cut-price items from dresses to kitchen towels, intends to shift to what it calls a “local fulfillment” model. The company is actively recruiting US merchants and will sell only their locally based merchandise, Temu said in an emailed statement. That’s expected to allow the Chinese-owned company to sidestep tariffs and it said it intends to keep prices for Americans unchanged.