Temu Resumes Direct China-US Shipping, Increases Ad Spend Following Trump Trade Truce That Cuts Chinese Tariffs

Benzinga
2025.08.26 08:52
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Temu has resumed direct shipments from China to the U.S. and increased advertising spending following a trade truce that reduced tariffs. The platform, owned by PDD Holdings, restored logistics operations after a suspension due to trade tensions. Despite mixed second-quarter results, PDD Holdings reported a revenue increase but a decline in operating margin. Temu's strategy includes building internal logistics capabilities to navigate customs more effectively, drawing lessons from competitors like Shein.

Amazon.com Inc. AMZN rival bargain ecommerce platform Temu has resumed direct shipments from Chinese factories to U.S. consumers and boosted advertising spending after a trade truce between Washington and Beijing reduced tariff pressures.

Trade Agreement Enables Shipping Recovery

The platform, owned by Shanghai-based PDD Holdings Inc. PDD, restored fully managed shipments in July after suspending the service in May amid escalating trade tensions.

Multiple Temu suppliers and partners confirmed the company had resumed handling logistics and customs formalities for suppliers, reported the Financial Times. The resumption follows talks between the U.S. and China in May that led to Washington slashing extra tariffs on Chinese goods to 30% for 90 days.

Marketing Investment Returns to Pre-Tariff Levels

Temu has increased U.S. advertising spending after earlier cutting marketing budgets during President Donald Trump‘s initial trade salvos, according to data analytics provider Smarter Ecommerce sources cited by FT. Company executives expect ad spend to return to first-quarter 2025 levels, before Trump unveiled sweeping tariff plans.

The moves underscore how the U.S.-China trade truce provided relief to low-value goods exporters. Trump initially announced plans to cancel de minimis exemptions for shipments worth less than $800 from China, subjecting them to duties exceeding 100%.

Impact on PDD Holdings Financial Performance

PDD Holdings reported mixed second-quarter results amid operational challenges. Revenue grew 7% year-over-year to $14.52 billion, beating analyst estimates of $14.35 billion. However, adjusted operating margin declined to 26.7 percent from 36.0 percent as total costs rose 36 percent due to higher fulfillment fees and logistics expenses.

Adjusted earnings per ADS of $3.08 decreased from prior year levels but topped consensus estimates of $1.91. Management warned that current profit levels are unsustainable and expects fluctuations as competition intensifies in China’s consumer market.

Logistics Strategy Adaptation

Temu has built internal logistical capabilities rather than relying on third parties, reducing exposure to stringent customs checks. The company observed how rival Shein maintained profitability through its subsidiary handling cross-border logistics, according to the report.

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