Temu offers ‘aggressive' payouts to lure US retailers as Chinese company grapples with tariffs

Core Insights - Temu is offering $1,000 to middlemen to recruit US retailers to sell on its platform as a response to the end of the "de minimus" exemption, which previously allowed goods valued under $800 to be shipped to the US without duties [1][2][3] Group 1: Business Strategy - Temu is aggressively expanding its network of US sellers to mitigate the impact of tariffs and shipping costs on its products, which include clothing, jewelry, and home goods [2][4] - The company aims to provide an additional sales channel for local merchants, thereby supporting their growth while offering consumers more choices [4] Group 2: Financial Performance - PDD Holdings, the parent company of Temu, has seen its shares rise approximately 40% year-to-date, with revenue growing by 7% to $14.5 billion in the most recent quarter, marking the slowest growth in years due to tariff impacts [4] Group 3: Market Context - The termination of the "de minimus" rule has significantly affected the growth of Temu and its competitor Shein, which previously benefited from this exemption [10][11] - Exports from Shein and Temu surged to $66 billion in 2023, a substantial increase from $5.3 billion in 2018, highlighting the impact of tariff changes on their business models [11]