Shein and Temu face sharp U.S. sales drop after tariff policy shift

Chinese e-commerce giants Shein and Temu reported a sharp decline in U.S. sales after beginning to pay increased tariffs imposed under ongoing trade tensions between Washington and Beijing, Bloomberg reported.

Sales at Shein dropped by 23% and at Temu by 17% within one week of adjusting retail prices to offset higher import duties, the report said. The move comes as a response to the U.S. decision to revoke the “de minimis” exemption, which previously allowed duty-free imports of goods valued under $800.

Both platforms had long relied on this policy to ship small packages into the U.S. without customs fees.

Following the policy change on April 15, average prices for Shein’s top 100 beauty and health products more than doubled. Prices in the toys and games category rose over 60%, home and kitchen items increased about 40%, and women’s apparel rose by 10%.

In response, Temu is reportedly planning a shift to a “local fulfillment” model, aiming to sell only goods from U.S.-based vendors to avoid future tariff exposure.