TMTPOST -- Temu, the online shopping giant, is relinquishing significant control over its Chinese supply chain in response to U.S. President Donald Trump’s new tariffs, a move that could lead to price hikes on the popular budget shopping app. The platform is accelerating a shift from its original model, in which Temu handled all aspects of the business—price-setting, shipping, and marketing. Instead, the company is now moving to a “half-custody” model, where factories ship goods directly in bulk to U.S. warehouses, and Temu only manages the online marketplace, according to sources familiar with the matter. While the “half-custody” shift is not mandatory yet, Temu has indicated that it will prioritize merchants who adopt the new framework. The company plans to eventually transition its entire U.S. operation to this model, sources said. This shift risks raising prices on Temu’s marketplace as merchants lose the economies of scale Temu’s previous shipping and handling model provided. Sellers will also need to offset higher delivery costs driven by the tariffs. Additionally, Temu is distancing itself from the model pioneered by Amazon.com, which has a 38% market share of U.S. online spending, thanks to its control of logistics and delivery networks.