Following Trump’s imposition of higher tariffs on Chinese goods and a crackdown on the “de minimis” loophole, Chinese e-commerce platforms Temu and Shein have seen a sharp decline in popularity in the U.S. market.
The “de minimis” exemption previously allowed tax-free treatment for e-commerce parcels valued under $800. Chinese platforms like Temu and Shein took advantage of it and became the biggest shippers. Now, those goods are subject to a 54 percent tariff and the per-item postal duty was increased to $100 in April and May and $200 starting in June.
Several measures in the U.S. have shown Temu and Shein’s sales declines:
- Daily Active Users (DAUs): Temu dropped by 52 percent in May compared to March; Shein declined by 25 percent.
- Monthly Active Users (MAUs): Temu dropped by 30 percent and Shein 12 percent.
- Rankings in the Apple App Store: Temu fell to the 132nd place from its top-three standing a year prior; Shein slipped to 60th, down from the top ten.
- Advertising spending in the U.S.: In May, Temu cut its ad budget by 95 percent year-over-year; Shein by 70 percent. In April, Temu reduced their ad budget by 40 percent and Shein 65 percent.
According to CNBC, Temu and Shein have begun adjusting their supply chain strategies, moving away from the “China direct shipping” model – where suppliers ship directly to consumers – to setting up local warehousing and distribution systems in the U.S. However, this shift introduces additional costs and management challenges.
Amidst the high U.S. tariffs, many Chinese platforms are now accelerating to shift to other markets, particularly in Europe. According to HSBC, 90 percent of Temu’s 405 million global monthly active users in Q2 2025 were from outside the U.S., especially from low-income regions such as Latin America.
Source: Epoch Times, June 5, 2025
https://www.epochtimes.com/gb/25/6/5/n14525505.htm