Temu (PDD)'s defining moves.
The defining strategic moves at Temu (PDD) — each one explained and grounded in the record.
The Borrowed Runway · Vertical Integration
Temu's Cheapest Input Wasn't Labor. It Was a Customs Rule — and Washington Just Repealed It.
Temu's prices ran on a 1930 tariff clause that let sub-$800 parcels enter the U.S. duty-free. As of May 2, 2025, that door is shut for China, and a 2025 law repeals it for everyone. The arbitrage didn't threaten to end — it already ended.
8 min
The Market-Entry Gambit · Market Entry
Temu Didn't Out-Innovate American Retail. It Found a Door Congress Left Open.
Temu was the most downloaded US app within weeks of its September 2022 launch. The story everyone tells is supply-chain genius. The real engine was a duty-free loophole on packages under $800 - and on May 2, 2025, the door slammed shut.
8 min