Temu Relaunches US Push With Aggressive Price Cuts to Recapture Market

A report has revealed that e-commerce platform Temu is making an aggressive comeback in the U.S. market, implementing substantial price cuts to regain ground lost to rival Shein after being impacted by recent tariff changes.

This strategic shift was detailed in a report by Bloomberg News published on September 9, 2025. The report analyzed transaction data and pricing information to outline the company's new approach.

According to the report, Temu has slashed prices on dozens of its best-selling products by an average of 18% in early September compared to late April, with some items discounted by as much as 60%. This follows a period of turmoil for the PDD Holdings subsidiary after the U.S. government removed the "de minimis" tariff exemption for small parcels. The policy change severely impacted Temu's low-cost model, contributing to U.S. sales plunging over 30% during some weeks in June.

In its renewed push, Temu has reportedly stopped passing import fees onto customers and has significantly ramped up its advertising. The company is also said to be urging its merchants to lower prices in exchange for greater visibility on the app. While some merchants are willing to accept lower margins to boost sales, the report noted that growth has yet to materialize for many, with some still experiencing sales declines.

Temu’s strategy contrasts with that of rival Shein Group Ltd., which has seen its U.S. sales recover despite raising prices after the tariff changes. Looking ahead, Temu is reportedly focused on building a comprehensive logistics network—from cross-border shipping to warehousing and last-mile delivery—to support its U.S. operations. This logistical investment could be crucial in its long-term battle for market share against established players like Shein and Amazon.com Inc.