US E-commerce Giant Temu Shifts Supply Chain Strategy Amid Tariff Pressure
Temu, a leading online shopping platform, is making significant changes to its supply chain in response to President Donald Trump’s new tariffs. The company aims to minimize its exposure to price fluctuations and potential disruptions by giving up substantial control of its Chinese supply chain.
Under the new “half-custody” framework, Temu will only manage the online marketplace, while factories will be responsible for shipping their products directly to American warehouses in bulk. This approach is a departure from Temu’s original model, where sellers outsourced all aspects of their business to the platform.
The shift may lead to higher prices for consumers, as manufacturers will need to absorb increased costs associated with shipping and logistics. Some vendors are also expected to abandon US sales altogether due to the added burden. With this move, Temu is attempting to mitigate the risks posed by tariffs and maintain its competitive edge in the e-commerce market.
Source: https://www.bloomberg.com/news/articles/2025-02-11/temu-overhauls-supply-chain-after-tariffs-risking-price-hikes