Jun 04, 2025 17:57:00

Temu user numbers fall by 58%, struggling as tariff exemptions end

Chinese online retailers Temu and SHEIN, which sell cheap products, are reportedly struggling after losing their tariff exemptions in the U.S. Data shows that Temu's monthly user base in the U.S. has fallen by 58%.

Retailer Temu's daily US users halve following end of 'de minimis' loophole | Reuters

https://www.reuters.com/business/retail-consumer/retailer-temus-daily-us-users-halve-following-end-de-minimis-loophole-2025-06-02/

Amazon's Chinese Rival Temu Loses 58% Of US Users As End Of Tariff Loophole Hits Business Model - PDD Holdings (NASDAQ:PDD), Amazon.com (NASDAQ:AMZN) - Benzinga
https://www.benzinga.com/markets/equities/25/06/45741240/amazons-chinese-rival-temu-loses-58-of-us-users-as-end-of-tariff-loophole-hits-business-model

Temu's US daily users drop 58% after China import policy shift
https://www.techinasia.com/news/temus-daily-users-drop-58-china-import-policy-shift

Temu and SHEIN have been selling their products cheaply in the United States by taking advantage of an exemption called the 'de minimis rule,' which does not impose tariffs on cheap products. However, the 'de minimis rule' was suspended under the Trump administration, as the system was being abused.

President Trump signs executive order to impose additional tariffs on China, Canada, and Mexico and end tariff exemptions for low-cost imports, potentially affecting low-cost online shopping apps such as Alibaba, SHEIN, and Temu - GIGAZINE

Just one week after the suspension of the 'de minimis rule,' Temu and SHEIN reportedly saw a significant drop in sales.

Credit card data reveals that sales of SHEIN and Temu have plummeted due to President Trump's tariffs on China - GIGAZINE

by Free Malaysia Today

The Trump administration has decided to abolish the 'de minimis rule' on May 2, 2025. Although Temu has changed its strategy to reduce advertising spending, it has fallen into a situation where the number of users has decreased by 58%. According to the analysis, the operating costs of Temu and SHEIN are estimated to have increased by 10% to 30% compared to when the de minimis rule was in place.

Temu's rival, SHEIN, another Chinese online retailer, is also likely to be affected in a similar way, but SHEIN says that spending per user is up compared to a year ago.