Temu Restarts China-US Direct Shipping After Trump Trade Truce

Low-cost e-commerce platform Temu has resumed shipping goods directly from Chinese factories to U.S. shoppers, according to the Financial Times. The service, which handles logistics and customs on behalf of suppliers, had been suspended in May when the Trump administration moved to impose duties of more than 100 percent on low-value imports. People familiar with the matter said Temu, owned by Shanghai-based PDD Holdings, reinstated the fully-managed shipping model in July after Washington and Beijing agreed to a 90-day trade truce that cut additional tariffs on Chinese goods to 30 percent and lowered the rate on small parcels to 54 percent. The temporary reprieve also prompted the company to restore its U.S. advertising budget to first-quarter levels. Temu and its suppliers view direct shipping as cheaper than maintaining inventory in U.S. warehouses even under the new levies. However, cost pressures are set to rise again when the United States abolishes de minimis exemptions for all countries on Aug. 29, subjecting every package under $800 to tariffs. Temu declined to comment on its plans beyond the current truce.