Online shopping giants Temu and Shein saw a sales decline after U.S. President Trump removed a duty exemption for their small parcels, signaling a potential chilling effect on American consumers drawn to their low prices.
Shein’s U.S. sales dropped 16% to 41% from Feb. 5 over five days, while Temu saw a decline of up to 32%, according to Bloomberg Second Measure, which tracks credit and debit card data.
The decline, comparable to the typical post-Christmas slowdown, reversed a growth trend from late January and persisted through Feb. 9, the latest available data.
The drop began a day after Trump announced plans to end duty exemptions for parcels under $800 from China, which cover most Shein and Temu shipments.
Though not yet implemented, the policy shift may have deterred shoppers worried about potential extra fees.
Seasonality, market competition, and macroeconomic factors may also be affecting sales.
Shein and Temu, which have relied on the small parcel rule to avoid tariffs, are ramping up efforts to counter new U.S. trade measures.
Shein is reportedly urging top Chinese suppliers to expand production in Vietnam, while Temu is shifting to a “half-custody” supply chain model, relinquishing some control over its Chinese operations.
Trump’s new China tariffs have led to shipping disruptions and price hikes. After ending the “de minimis” rule, the U.S. Postal Service briefly halted inbound packages from China and Hong Kong before reversing the decision within a day.
On Saturday, the U.S. president announced a delay in removing the duty-free exemption until systems are in place to collect tariff revenue.
