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Temu shifting to ‘local fulfillment’ model to avoid tariffs, Bloomberg reports

PDD’s (PDD) Temu is shifting to a “local fulfillment” model, selling only goods from local U.S. merchants to American consumers, to avoid tariffs and keep prices unchanged, Bloomberg reports. The move is designed to help local merchants reach more customers and grow their businesses, and is part of Temu’s ongoing adjustments to improve service levels. Temu’s shift comes as retailers face soaring import taxes and the scrapping of the de minimis tariff exemption for small parcels, which has led to price increases for U.S. consumers. Temu rivals offerings from Amazon (AMZN) and Alibaba (BABA).

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