According to www.supplychaindive.com, PDD Holdings — owner of Temu — is accelerating investments in local fulfillment infrastructure across European markets following the European Union’s implementation of a €3 customs duty on each imported item valued at €150 or less, effective July 1, 2026.
Regulatory shift triggers operational response
The EU’s new flat-fee import rule replaces its prior de minimis duty-free threshold, marking a structural change aligned with similar U.S. policy adjustments. As co-Chairman and co-CEO Lei Chen stated during an Aug. 24, 2026 earnings call, this regulatory shift creates
“a considerable impact” — Lei Chen, co-Chairman and co-CEO of PDD Holdings
for parts of PDD’s business, particularly affecting fulfillment efficiency and cost structures for cross-border orders.
The duty applies until 2028, according to EU guidance cited in the source, establishing a multi-year horizon for adaptation. Unlike temporary measures, this framework signals sustained pressure on low-value, high-volume e-commerce logistics models that rely on rapid, tariff-free entry into consumer markets.
PDD Holdings’ strategic pivot reflects direct responsiveness to enforceable fiscal parameters—not hypothetical risk assessments—making the €3 per-item levy a concrete driver of capital allocation decisions across its supply chain network.
Local merchant onboarding as core mitigation
To counterbalance rising cross-border costs, PDD Holdings is intensifying efforts to onboard and support
“high-quality local merchants” — Lei Chen, co-Chairman and co-CEO of PDD Holdings
in affected markets. This initiative aims to broaden domestic product supply, shorten delivery lead times, and reduce dependency on long-haul international shipping lanes subject to the new duty.
The company is also speeding up development of localized fulfillment capabilities, though the source does not specify facility counts, investment sums, or geographic rollout timelines beyond the EU context. The focus remains squarely on proximity-driven resilience: shifting from centralized offshore distribution to distributed, market-adjacent inventory deployment.
These moves follow PDD’s earlier adaptations to post-de minimis conditions in the United States, confirming a repeatable playbook grounded in regulatory anticipation rather than reactive crisis management.
Source: Supply Chain Dive
Compiled from international media by the SCI.AI editorial team.
