Temu Fighting Back with Deep Discounts in US Market
Temu fighting back with deep discounts in US market has become one of the most talked-about developments in global e-commerce. After months of turmoil caused by Donald Trump’s tariff changes, Temu — the fast-rising discount retailer owned by PDD Holdings — is charging back into the United States. The platform is slashing prices, scrapping import fees, and ramping up advertising to regain ground against rival Shein competition.
This aggressive strategy comes as Temu US sales were hit hard by the tariff impact earlier this year. The removal of the de minimis exemption disrupted its small-parcel shipping model, but now Temu is betting big on e-commerce discounts to claw its way back.
Temu’s Strategic Comeback
Temu’s re-entry into the American retail scene is bold. According to Bloomberg tracking, over two dozen of Temu’s best-selling products saw an average price cut of 18% in early September compared with late April. In some cases, discounts went as deep as 60%.
The timing is significant. With the US holiday shopping season approaching, Temu is enticing buyers with bargains while eliminating added import fees that once frustrated consumers. At times, customers previously paid taxes higher than the item’s cost — a major deterrent to growth. By removing this burden, Temu aims to restore trust and attract price-sensitive buyers back to its platform.
The Impact of Trump’s Tariff Changes
The tariff impact on Temu’s business model cannot be overstated. For years, the company relied on shipping small parcels directly from Chinese factories to US consumers under the de minimis exemption. This policy allowed duty-free access for shipments under $800.
When the Trump administration scrapped this advantage, Temu’s logistics model collapsed. Its once cost-efficient operations suddenly faced steep levies, raising consumer costs and driving away bargain hunters.
In June, Temu US sales plunged by more than 30% in certain weeks, followed by a continued 10% decline through July and August. The platform even shifted its focus to Europe temporarily. However, with Shein competition continuing to thrive despite higher prices, Temu recognized the need to fight back aggressively.
Deep Discounts as a Weapon
To regain lost ground, Temu is doubling down on e-commerce discounts. Reports show the company is urging its merchants to slash prices further in exchange for increased visibility on the app. Sellers confirm that Temu has boosted alerts on its merchant portal, strongly encouraging them to cut prices.
Merchants, though facing thinner margins, largely agree to cooperate in hopes of reviving sales. With consumer wallets squeezed by inflation, Temu’s reputation as a low-cost marketplace could once again become its strongest weapon.
Advertising Surge to Rebuild Presence
Alongside discounts, Temu has ramped up marketing in the United States. After months of weak advertising — sometimes fewer than a few dozen ads per day — Temu has now increased its daily ad count to thousands, even surpassing 10,000 on certain days.
While this remains lower than its pre-tariff peak of 20,000 ads daily, it signals a renewed push to dominate digital spaces where Shein competition already commands strong visibility.
Advertising remains critical to Temu’s survival. Its rapid rise in the global e-commerce scene was fueled by aggressive ad spending, viral social campaigns, and app downloads. By reigniting this strategy, Temu hopes to remind US shoppers why it first became popular.
Logistics Overhaul and New Partnerships
Discounts and ads alone cannot guarantee success. Temu is also restructuring its logistics network to adapt to the tariff impact. The company is working with third-party courier services to establish a more comprehensive supply chain. This includes cross-border shipping out of China, US-based warehousing, and last-mile delivery.
Merchants are encouraged to use Temu’s logistics solutions instead of finding their own, making the platform more competitive and reliable. Some larger merchants even rely on Amazon’s fulfillment services for their Temu orders, blending networks to overcome infrastructure weaknesses.
Challenges Still Remain
Despite its aggressive rebound strategy, Temu faces serious challenges. Many merchants report that sales remain weak, with some experiencing a 20% drop in recent weeks. For businesses selling across multiple platforms, Temu has slipped to the bottom in terms of performance.
The biggest issue lies in sustaining growth while maintaining e-commerce discounts. Price cuts attract shoppers, but they also eat into profit margins for both Temu and its sellers. Without long-term solutions, this may not be sustainable.
Meanwhile, Shein competition continues to thrive. After briefly slowing due to the end of the de minimis exemption, Shein recovered quickly, raising prices while still managing to grow. Temu must prove that its discount-driven model can win over American consumers in the long run.
The Road Ahead for Temu
Looking forward, Temu’s strategy appears focused on three pillars:
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Price Leadership — Winning with unbeatable discounts.
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Advertising Revival — Regaining visibility through aggressive marketing.
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Logistics Reinforcement — Building a strong delivery network for the US.
If Temu executes these effectively, its presence in the US market could stabilize and expand again. However, much depends on consumer trust, merchant cooperation, and resilience against political and economic challenges.
Conclusion
Temu fighting back with deep discounts in US market is more than just a headline — it’s a critical test of whether an e-commerce giant can adapt to regulatory shocks and fierce Shein competition.
By cutting prices, scrapping import fees, and strengthening logistics, Temu is signaling its determination to reclaim its place in American e-commerce. But the battle is far from over. The tariff impact has reshaped the industry, and only time will tell if Temu’s bold strategy pays off.
For now, one thing is clear: Temu’s comeback is underway, and US shoppers will be watching closely as the discounts roll in.
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